When you move to another country or send personal belongings abroad, international transport comes with several legal obligations, including customs duties and taxes.
These charges can significantly impact the total cost of shipping and, if not properly considered, may lead to unpleasant surprises.
What Are Customs Duties and Taxes?
Customs duties and taxes are charges applied by a country’s customs authorities on imported goods. Their main purpose is to protect the local economy, regulate international trade, and generate revenue for the government.
VAT vs GST
Depending on the country to which you’re shipping your belongings, you may come across different tax terms — the most common being VAT (Value Added Tax) or GST (Goods and Services Tax).
VAT is the tax applied in many European countries (including Portugal) and other regions worldwide.
When importing personal goods, VAT may be applied to the total declared value of the items.
GST is the equivalent of VAT in countries like Australia, New Zealand, India, Canada, and Singapore. It is also a consumption tax, but its application can vary depending on the country.
How Are These Charges Calculated?
The calculation of customs duties and taxes is based on several factors, including:
- Declared Value of the Goods: Includes the amount stated on the commercial invoice, as well as transport and insurance costs.
- Country of Origin: Where the goods were produced can influence the applicable rates.
- Product Description and Use: Determines the correct tax classification.
Understanding customs duties and taxes is essential for a smooth experience. Make sure to provide accurate and complete documentation and be aware of the financial responsibilities involved.
Before arranging the international shipment of your personal belongings, it’s important to:
- Check the tax requirements of your destination country.
- Confirm whether VAT or GST exemptions apply.
- Gather all the necessary documentation to qualify for these exemptions.
At Global, we support you every step of the way — from documentation to customs management — so your international move goes smoothly, with no surprises.
We carefully analyse each case, assess all possible customs exemptions, and guide you through the entire process, ensuring a clear and stress-free service.