New import duty and tax rules are affecting online shopping. But many UK consumers don’t realise they are eligible to get the import charges back from HMRC if they return their items. It is estimated that UK customers bought £55bn worth of items from abroad last year. The same customers returned 30% of those purchases, making them eligible to reclaim circa £750m in taxes that year alone.
How can I tell if I need to pay import charges when shopping?
UK shoppers buying goods internationally are required to pay the import VAT and duties on purchases above £135. Since Brexit, UK shoppers now have to pay customs charges on items imported from the EU as well.
How much will I be charged?
Import VAT
Import VAT is paid on goods sent to the UK from abroad. It’s calculated on the total cost of the item and shipping and handling costs. The usual UK Import VAT rate is 20% and this is added up after you’ve made your purchase.
Customs duty
Customs duty can be anything from 0-25% depending on your purchase and the rules can vary so it’s always worth asking the retailer before you make a purchase.
However, the “rules of origin” agreement between the UK and the EU means that customs charges won’t usually be applied to products that have been produced and manufactured in the EU. You can ask your retailer to provide you with an origin declaration for you to prove your order was made and manufactured in the EU.
See what upfront customs fees you could pay if you import goods to the UK with this handy calculator.
Your rights to reject unexpected costs and return the items you don’t want to keep
Under EU rules, a trader must repair, replace, reduce the price or give you a refund if goods you bought turn out to be faulty or do not look or work as advertised. You can also return any goods bought online (with a few exceptions) for any reason within a 14-day cooling-off period – even if you simply changed your mind. Your refund must include any shipping charges you paid when you made the purchase. However, the trader may charge you delivery costs if you requested non-standard delivery (such as express delivery).
Can I reclaim delivery costs and import fees?
This claim can be made within 90 days of the import date for unwanted items and up to a year from the return date for damaged and defective items.
There are currently two ways to reclaim the duty refund. The traditional approach involves contacting your courier and completing HMRC paperwork. But there is a second way, using a digital service provided by Duty Refunds.
Why go through HMRC for my refund?
If you decide to pursue your refund via HMRC you get to keep all of the refund due.
However, it can be time-consuming, with lots of paperwork and confusing forms to fill out, and it can be difficult to track down an advisor for queries. Moreover, if you get your claim wrong, it could be rejected. If the claim is rejected due to missing details you also won’t be notified and the whole process can take weeks.
Why use a digital refund service?
Using a service such as Duty Refunds is hassle-free and saves you time. It’s also done on a no-win, no-fee basis. As a customer, you’ll be provided with a dedicated advisor to handle your claim who will take all the necessary details from you and complete the forms on your behalf. Our digital solution is also integrated with HMRC and couriers, which include DHL, DPD, Fedex and Parcel force. All of which contributes to the speed and efficiency of the Duty Refunds service.
Pursuing your claim this way will only cost you a single payment of 15% from your customs refund money after the claim is successfully paid.
About Duty Refunds:
As the first and only online import duty and VAT refund platform for UK shoppers, Duty Refunds has helped customers refund their purchases amounting to half million pounds and is rated 4.9 excellent on Trustpilot. We also work extremely closely and are integrated with courier companies (eg: DHL, DPD, Fedex and Parcel force) and HMRC.
At Duty Refunds, we believe returning an item should be just as easy as buying it in the first place. Money and time should be spent on enjoying the fun bits of shopping and unboxing. If you need any help on duty & tax refund for your international shopping return. Please feel free to chat with us through our live chat, or fill in our online form in 5 mins and start your claim straight away.
