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Import tariffs: what remote workers need to know

Published · 2 min read

Import tariffs explained for remote workers, with a worked example, a checklist and the mistakes to avoid.

Why this matters for remote workers

Remote workers may earn in one place and live in another, which raises questions about where and how income is taxed.

Worked example

Here is the calculation with sample figures. Change any number in the Tariff Calculator to run your own.

Worked example: Tariff Calculator
Value of goods6,250.00
Duty rate (%)10%
Import duty625.00
Landed cost6,875.00

Import tariffs: how it works

A tariff is a duty charged on imported goods, usually a percentage of their customs value.

Tariffs change often and depend on product classification and origin.

A second example with larger figures

Scaling the inputs up shows how the result moves. Percentages stay the same, so the tax grows in proportion to the amount it is applied to.

Second example with larger figures
Value of goods18,750.00
Duty rate (%)10%
Import duty1,875.00
Landed cost20,625.00

Using the calculator step by step

  1. Open the Tariff Calculator.
  2. Enter your own figures on each numbered line.
  3. Set the rate to the one that applies to you. Defaults are examples, not advice.
  4. Read the result and the formula below it.

Key terms

Taxable income
Income left after allowances and deductions, on which the tax rates are applied.
Zero rate
A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
Tax credit
An amount subtracted directly from the tax bill, worth its full face value.
Standard rate
The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
Effective rate
Total tax divided by total income, the average rate you actually pay.

A quick checklist for remote workers

  1. Classify the product.
  2. Confirm origin and any trade agreement.
  3. Calculate landed cost.

Common mistakes to avoid

Run your own numbers. The Tariff Calculator updates as you type and shows the formula it uses.

Frequently asked questions

Why should remote workers care about this?

Remote workers may earn in one place and live in another, which raises questions about where and how income is taxed.

What is the quickest way to calculate it?

Use the Tariff Calculator: enter your figures and it shows the result and the formula.

Is this tax advice?

No. It is general information for planning. Rules differ by country and change over time, so confirm with your tax authority or a qualified adviser.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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