Customs charges are fees that the UK government charges on goods imported into the country. The charge is calculated based on the value of the goods, and it is important to be aware of what these charges may be before you order anything from abroad.
In some cases, customers may be refunded these charges if they meet certain criteria.
In this blog post, we will explore what those criteria are and how you can go about getting your refund.
What are customs charges?
If you’re ordering from the EU, there are a few charges that UK customers have to pay: import VAT, customs or import duties, and handling fees.
First, there’s import VAT (value-added tax). This is a tax charged on goods imported into the UK from another country. The import VAT rate depends on the type of goods you’re importing and their value, and it’s usually charged at 20%.
In addition to import VAT, you may also have to pay customs duty. This tax is charged on goods imported into the UK outside the European Union. This applies to goods ordered from the EU retailers but manufactured outside the EU, too. However, the customs duty is zero for goods manufactured in the EU.
The rate of customs duties depends on the type of goods you’re importing. Tariff is clearly stated on the import declaration, so you can easily check whether you have overpaid or not for imported goods.
Finally, you may also have to pay a handling fee. This is a fee charged by the courier or delivery company for processing your customs handling and charges. The handling fee rate varies depending on the courier or delivery company you’re using (Royal Mail, DHL, FedEx, etc.) and is non-refundable.
| Courier company | Handling fee |
| DHL | £11 or 2.5% of duty+VAT, depending on which amount is higher |
| DPD | £5 |
| Parcelforce | £8 |
| Royal Mail | £8 |
| FedEx | £12.5 or 2.5% of duty+VAT, depending on which amount is higher |
| UPS | £11.50 or 2.5% of duty+VAT, depending on which amount is higher |
Once goods arrive at customs, the courier company is responsible for making customs declarations, and they will pay duty and VAT, then pass the charges on to you, the customer. Typically, customers receive an email with all payment details.
You can refuse to pay VAT or other charges. However, that will result in you not getting your items and potentially not getting refunded for your goods.
If you are worried about getting a faulty item after VAT payment, you should know that you can get a refund of these charges in many cases.
Why do I have to pay these additional charges?
After the recent Brexit vote, many UK shoppers have noticed a significant change in how online shopping works. For instance, before this transition period, you could access stores from any EU member state without any taxation or custom fees.
Now, however, prices have risen, and delivery times have increased as retailers become more selective about who they serve.
Furthermore, after the Brexit transition period, the UK shoppers have to deal with special procedures around paying VAT and the extra hassle with customs declaration service in case they want to get their money back for returned goods.
Who can reclaim import VAT?
If you’re a UK resident and you’ve paid customs duties on goods that you’ve bought from and outside the European Union, you may be able to get a refund of the duty if:
- The goods are for your own personal use;
- You’ve already paid the customs duty;
- You return the goods to the country they were sent.
The duty refund claims are sent to the HMRC, and you can apply either as an individual, freight forwarder, or agent.
If you ordered alcohol or tobacco, you should know that these are excise goods, and special rules and import taxes apply to these items. Therefore, you cannot submit a request to get your money back.
Can you reclaim import duty in the UK?
If you meet the criteria above, then you may be refunded the customs UK VAT.
Let’s look at some special circumstances in which consumers are unsure if they are entitled to a refund.
Can I get a refund if I buy multiple items and return only one?
Yes, even if you decide to return only one of the imported goods, you can claim a VAT refund.
For example, if you’ve ordered a shirt in two sizes and wish to return the one that doesn’t fit you, you will get a partial refund for the proportion of goods you have returned.
Import charges will be calculated according to the value of goods you are returning.
Can I get my money back on orders from eBay?
Yes, you can.
It doesn’t matter from which retailer you bought the goods. You can get a returned goods relief as long as you have proof that you have returned the same goods to the retailer.
Can I get my money back if I got the refund from the retailer, but I was told to keep the item?
You do not have to return the items to get your money in certain circumstances.
If you have paid customs duties on goods imported and got the money back from the retailer, but you were told to not send imported goods back, according to regulations of EU-UK trade, you can apply for a refund of duty and VAT.
In this case, you will need to send a copy of the refund email or letter from the retailer as proof when you submit your claim for a return of import VAT and duty.
Can I get a refund if I paid for the customs charges and never received the goods, but the seller sent me my money back?
Yes. In this case, you can use tracking information to see that the goods have crossed the UK border and then were lost. All you need to claim a refund is confirmation from the retailer that you received a refund for the bought items.
How to get a refund of customs charges on returned goods
Claiming a customs duty refund can be a long and difficult process. All claims have to be made online to Customs Declaration Service by submitting a C285 form. Besides the Customs declaration form, the following documents are needed: confirmation from the retailer that goods have left Great Britain and you received a refund and courier documents.
Additionally, import declarations’ documents are quite confusing, and there is always a risk of incorrectly filing the VAT relief claim.
In many cases, it takes around six weeks to receive the decision from customs authorities. If your claim is denied, HM Revenue will sometimes not notify you.
Luckily, Duty Refunds can help with the refund process.
Claim customs duty refund with Duty Refunds
Duty Refunds is an online service that specialises in getting refunds of customs duties for UK customers.
We have a team of experts who know the ins and outs of the process and can help you get your money back on duty and VAT with minimal hassle.
All we need to claim a refund on your behalf are your contact details and tracking waybill number. We will contact the courier on your behalf to get the required courier documents and fill and file the claim. Once it is approved, the money will be transferred to your bank account.
During the refund process, you can always check the status of your claim on our website.
Final thoughts
If you’ve paid import duties on an item and want to claim a refund, it’s important to know that you may be refunded if you meet the right criteria.
In many cases, you can claim a refund of import taxes if the goods are for your own personal use, you’ve already paid the customs charge, or you return the goods to the retailer.
If you’re unsure about whether you’re eligible for a refund, it’s best to contact Duty Refunds for help. We can assist you in claiming your refund with minimal hassle.