UK shoppers need to be aware of a few things when buying goods online from Europe after Brexit.
In this blog post, we will answer all of your questions about new rules when ordering from Europe! We will explain when you do and do not have to pay tax and customs charges and what happens if you do not pay these charges.
We will also discuss in which circumstances you can get a refund for customs charges you may have paid. Stay tuned for more information about shopping online from the EU sellers!
Change in delivery rules
Many shoppers have faced extra charges on their online orders since Brexit.
It may come as a surprise to you that there are additional charges beyond the purchase price of a product. In some cases, you may be charged extra and only find out once you receive the bill.
To make the matter worse, these charges can even go over £100!
The main reason is that the UK is no longer part of the EU’s customs union, meaning that now there are customs charges on goods coming into the UK from the EU. The courier typically informs the buyers on the total cost they should pay, and once the payment is completed, the buyer receives the parcel.
Today we would like to share with you useful information on the current rules for buying online in EU countries.
Charges for orders below £135
Not much has changed for orders below £135, and rules since before Brexit still apply.
Customs duty
UK customers should not be charged for customs duty if the value of their goods is less than £135. This is the threshold for these charges unless you are buying tobacco or alcohol (excise goods).
For these items, you pay excise duty, so your bill at the end might be higher than expected.
Import tax
The same rule applies to import value-added tax (VAT) – £135 is the threshold value, so you should pay only for the amount you see at checkout.
Any taxes you should pay are calculated according to the total value of the goods and are already included in the price, so there is nothing to worry about. This VAT rate should be the same as when buying goods in Great Britain – 20% for most items.
Charges for orders above £135
Brexit resulted in some changes in consumer rights.
For example, for goods worth over £135, things get a bit complicated, but don’t worry – we will give you a breakdown of all charges, so you are not surprised once you receive a bill from your courier.
Customs duty
For all orders worth more than £135, you need to pay customs duty, and the amount depends on the intrinsic value, excluding transport costs and the type of goods you are buying according to the Tariff. Customs duty can also depend on the weight of the item.
The EU and UK stick to the Trade and Cooperation agreement, so the good news is that this charge rate can be 0% in many cases. The Rules of Origin agreement states that you do not have to pay customs duty for goods produced in the EU.
However, if it is bought in Europe but manufactured outside the EU, the customs duty will be charged according to the Tariff. For example, if you decide to buy a pair of running shoes online, the expected import duty rate will be 10-12%.
We recommend that you ask the retailer where the goods are dispatched from, especially if you plan on ordering from big online marketplaces, so you know whether you need to pay duty. On Amazon, it is usually clearly stated from which EU country it is sent, but our recommendation is to reach out to the retailer and double-check.
Import tax
When it comes to value-added tax on imports, there are some changes for orders above £135 we would like to point out.
This tax will not be collected by the retailer but charged at the moment goods arrive in Great Britain.
This VAT rate is the same as the UK rate – 20%. The UK retailer would charge the same if the item was bought in Great Britain. However, it’s important to understand how this tax is calculated.
Import VAT is applied to the customs value of goods, as well as postage, and delivery charges, so the overall amount you have to pay may seem even higher than 20% of the amount at checkout.
Typically, the courier company covers these costs and notifies the buyer. Once you repay the delivery company, it ships the item.
Some retailers might pay import VAT and other customs charges, but in most cases, the responsibility for paying import VAT is passed on to customers. You can pay fees online.
How is import duty calculated?
Import duty is calculated based on the type and value of the goods, as stated on the customs declaration.
If you want to know how much you need to pay for these charges up front, use our Import Duty Calculator to check the rate of import charges quickly. We will show you precisely how much you have to pay for duty, VAT, and courier fees.
What about courier fees?
Couriers always charged an admin fee for customs clearance, however, after Brexit, more shoppers have been affected by this change. The courier handling fee includes their customs handling and delivery costs.
So, before you click on that “Check out” button, take into account the amount of another fee you need to pay. The amount you have to pay depends on the courier company.
Some couriers (for example, Royal Mail) have a fixed rate that doesn’t depend on the rate of VAT and duties.
Another postal service might ask you to pay the minimum charge or 2.5% of duty+VAT.
Also, we would like to note that the courier handling fee does not depend on possible insurance costs.
| 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 |
Rules for gifts
After Brexit transition period, special rules for gifts have been imposed, and charges are even higher compared to when ordering something by yourself from the EU country.
Extra costs for gifts depend on the value or amount paid for the item. Here is a breakdown of extra fees:
Gifts worth less than £39
Import VAT and customs duty should not be charged for these gifts. The only exception is if you receive alcohol or tobacco, for which you have to pay excise duty.
Gifts worth between £39 and £135
You will be charged 20% import tax for these gifts.
This import VAT is calculated in the same way as import VAT for goods bought online, so it might be cheaper just to buy the item yourself.
Courier handling fees will be charged as well, but no customs duty.
Gifts worth more than £135
Along with import VAT and handling fees, you will also be charged customs duties.
What happens if you refuse to pay the customs charges?
You can refuse to pay customs duty. However, this is never a good idea.
Firstly, this will result in not getting your package. The courier firm will keep your parcel for three weeks, and later either destroy it or send it back.
If the item is sent back, you may get a refund from the retailer. However, if the courier decides to destroy it, you can never be refunded for the bought items. Even if you would instruct the courier to return the parcel to the seller, the postal service doesn’t have to follow these instructions, as they are just a third party between you and the retailer.
As it is quite risky to refuse to pay import VAT and other charges, we recommend that you pay VAT and duties, receive the package, and return it to the sender.
According to the Consumer Law, shoppers from Great Britain have 14 days to return the items and receive a full refund. We recommend checking whether you are sending the parcel back at your own expense or if the EU retailer offers free returns.
Can I reclaim customs charges?
Yes! One of the most common situations in which you can ask for a refund of additional fees is on returned goods.
As said, according to Consumer Rights, you have two weeks to decide whether you want to keep the item or return it.
Once it is returned and the seller has refunded you the money for the parcel, you can file a claim to HM Revenue and Customs (HMRC) to get your money back.
Even if the seller told you not to return the item but refunded you the money for it, you are still eligible for a duty refund.
In case you wish to return one of the items from your parcel, you can simply receive a partial refund of customs duty calculated for the value of that returned item.
Before starting the process, you should know that only VAT and import charges can be refunded. You cannot reclaim courier handling fees or costs of return shipping. Also, excise duties cannot be refunded.
How to get a refund of import duty?
If you wish to claim back import VAT and customs duty, you can do it by submitting a claim to HM Revenue and Customs. HMRC will refund the customs charges, but not courier fees as these are levied by the courier and are non-refundable.
However, before you even begin with the process, you should check whether you have the needed paperwork. Firstly, you will need confirmation of the return from the seller and the courier documentation to file the claim.
If your courier did not send these documents along with the parcel, you would have to contact the courier company and ask for the papers. Getting these documents shouldn’t be an issue if you still have the tracking ID.
Once you gather all documents, you can go to the gov.uk website and find the C285 form among the CHIEF claims. Filling out the form is the most important step – you will have to provide personal details, information about the goods and courier that delivered them, and details about repayment.
The process of claiming customs charges can be long and difficult. The breakdown of customs charges and paperwork can be confusing, and the form can be incorrectly completed. The website won’t validate the information, so it is solely your responsibility to give the correct data.
Moreover, HMRC responds to claims typically after six weeks, and sometimes UK shoppers are not even notified about the denied claims.
This is why we recommend using our service, Duty Refunds. We have a team of experts that can help you with the process and increase your chances of getting a refund.
Reclaim customs charges with Duty Refunds
UK law allows UK shoppers to reclaim import vat and other charges through an agent or freight forwarder.
Our experts have successfully reclaimed customs duty for our clients in many cases. We will help you with all the paperwork and make sure that you get your refund as soon as possible.
You can check the eligibility for a refund by completing a short form on our website, and if everything is okay, initiate the process with Duty Refunds.
All we need in most cases is the tracking number, and we will take it from there. In about three weeks, you will receive a refund, and until then, you can check the status of your claim whenever on our website.
Final thoughts
We hope that this article was helpful, and now you know everything about extra charges when buying online from the EU.
Remember that you may have to pay import VAT and additional charges, but it is possible to refund them if you have sent back your package.
If you need help with getting your money back, do not hesitate to contact Duty Refunds! We will be happy to assist you.