Great Britain has always had VAT charges. However, since Brexit, details have changed a bit regarding customs duties, import VAT, and any additional charges a package can contain.
While before, you were usually liable to pay the only VAT that was included in the package, now that is not the case, and import duties can apply.
The journey can be complex and lengthy, but we are here to guide you through the process and help you reclaim import taxes and duties. This is why today we will cover:
- What are import taxes?
- Which parcels are qualified for reimbursement?
- Who can apply for a reclaim?
- What will you need?
- Claim on C285 form and what it is
So buckle up and see how you can claim import duty, VAT and other taxes on your imported goods.
What are customs charges?
When we look at customs charges, you may be surprised by what is included. Besides the overall cost of a package, it also provides insurance, freight, duties and VAT.
The amount of customs duty and import taxes to be paid depends on the value of the package, and they are calculated based on the type of goods imported. You can check how much and if any duty and VAT you will need to pay on the gov.UK website.
Import VAT always has the same rate of 20%. However, it is not the same way for the rest of the charges. We recommend you check out how the import duties are calculated before proceeding with the reclaim.
What are customs duties?
It is good to note that import taxes (or import VAT) are not the same as import duties. These are two separate fees that should be paid.
Customs duty is a charge you must pay when packages are sent to you from abroad. Regardless of your purchase reasoning, be it for business or private use, the duties will apply if the value of the goods is over £135.
Also, if you ordered a pair of shoes and dress online, the duties will be calculated differently, even if the cost is identical.
Scenarios, when the customs duty would be applied, are if you are:
- Buying goods from a country outside the UK
- receiving a gift
However, customs duty is not applied to personal items being sent back to you or packages below £135. To avoid customs charges, make sure that the customs declaration states personal belongings when filling it out.
What are handling fees?
Handling fees are applied on top of the order and shipping fees. The delivery company usually provides them with the invoice, and you cannot claim them as they are non-refundable.
However, you should save the documents provided to you by the courier if you are filing for a refund of customs charges.
Please keep in mind that different companies charge differently for the handling fees. Some companies even assign an additional fee if the customs handling your package decide to hold your parcel longer.
Which parcels are qualified for a reclaim?
You can file for a reclaim on any parcel, as long as it is not excise goods and you have already returned the package to the sender and received a refund. However, besides the copy of the invoice and relevant documents, you would also need your VAT registration number if you wish to reclaim your input VAT.
The basic information includes:
- Your full name and address.
- Reclaim reason
- Customs Duties and VAT proof of payment
- Evidence that the goods were returned
Be mindful if you decide to file for a reclaim not to enter any credit card details as they are not mandatory at the time of the claim.
Who can apply for a reclaim of import taxes?
Besides an individual, a reclaim can be filed by a freight forwarder, an agent or an importer. All refunds must be made to the HRMC, and you can file them if you would like to return a package or have been overcharged, in which case you will need to fill out the C285 form.
If you are unsure, you can email HMRC to check everything you might need for your claim.
When can a person apply?
A person can apply only after they have paid for the customs duties. You will need to return the package first and follow the guidelines of the reclaiming process on the gov.uk website when it comes to the time frame. It is important to note that you can apply for a refund if the goods have been returned to the seller within 365 after delivery.
What will you need?
The entire process can be tiring and complicated, but we will try our best to simplify it for you and provide detailed guidance.
When filing for a reclaim, you can do so in two ways:
- through Customs Handling of Import and Export Freight (CHIEF) online service
- through Customs Declaration Service (CDS)
If you are unsure which approach to take, either through CHIEF claims or the Customs Declaration Service, don’t worry. In short, they are very similar. Both use their version of the C285 form; the main difference is filling out those forms.
What is CHIEF, and how to claim it with C285 form?
As the name states, this is a branch within the Customs that handles the export and import of regular and excise goods. So if you have paid for customs or excise duty, you can file a claim using the CHIEF version of form C285, which is the E2 Entry Acceptance Form and Form C88 (main customs form).
The C88 form was used initially for international trade to declare the goods to customs, it isn’t anymore, so if you see that this is requested anywhere, you can ignore it. On the other hand, the E2 form is used for a financial remedy, meaning a reclaim.
A CHIEF claim requires a CHIEF entry number. This is the equivalent of the Movement Reference Number (MRN) which should contain the Entry Processing Unit number (EPU), the VAT Registration Number, and the Import Entry number.
All the transport documents (which include the airway bill or bill of lading) should be under the C285. If you do not have this when filing for repayment or remission, you can request it from the Customs declaration service.
A commercial invoice will be attached to the package when you receive it, and more often than not, it needs to be filed with the rest of the documents when filing for repayment or remission.
What is a CDS claim?
The CDS customs declaration service is a new electronic system for handling customs declaration processes introduced due to CHIEF claims closing down in 2023.
The process will remain the same, using the CDS version of the C285 form for repayment of import duties.
Here are the documents you need to apply:
- sales invoice
- packing list
- airway bill or bill of landing
- amount of the paid taxes
- the total amount that should have been paid
- contact details and address.
- Bank details in case the refund is to be paid directly.
Suppose you want to inquire about the entire process through the gov.uk support, we recommend you not provide them with personal or financial information (i.e. national insurance number or CC details.)
Claim with C285 form
To claim a repayment with a C285 form, you must do it by post.
It is essential to know the difference when choosing a C285 form as it depends on whether you are using the CDS or CHIEF claims.
The form must be completed online and then printed out. Since there is no way to save the C285, it must be a fully completed form before printing.
When filling out the form, you cannot click next unless you have filled out all the fields. The first page will contain all your information, like first and last name, address and phone number.
The second page concerns the representative details, including their name, address, VAT registration number, the EPU (3-digit number), and import entry number.
After that, you will have the repayment application, where you will be asked whether you are a private importer and the reason for your reclaim.
The basis of a claim will contain the product description and the supporting evidence, which include the C285 that you are filling out, the invoice you received, and an airway bill, if possible.
The last three steps contain you filling out how much duty you have paid, who will receive the repayment and the declaration.
A partly completed form will not be accepted since you will not be able to proceed to the next page. If you want a freight forwarder to fill out the form for you, make sure you provide them with all the necessary information.
Once you have all the documents and the hard copy of the C285 form, you need to send it to the address highlighted on the said form.
How can Duty Refunds help you reclaim your import taxes?
When you have returned your package to the sender, you can file for repayment or remission on the gov.uk (HMRC) website by filing form C285.
However, while the process can take up to 6 weeks or more, usually, you will not be notified by the customs if your claim has been rejected.
In the case of rejection by HRMC, you can always fill out the feedback form and provide your opinion on their service, but most of the time, it only depends on whether you have filled out the form fully or not.
This is why we can help you get a refund on the customs charges. It is our mission to assist our clients with utmost proficiency and speed. While you might wait six weeks or more through HRMC, we will get you your money back in just three weeks.
Reclaim customs charges with Duty Refunds
Our process has been simplified for your convenience. The main thing you would need to do is fill out our form.
All we need is your waybill/tracking number. If you qualify, we will take it from there. Duty refunds will contact the courier service for the documents needed. Our team will fill out all the necessary paperwork for you, and the entire process will take up to three weeks.
If you wish to check on the status of your claim, you can simply log in to your Duty Refunds account and check.
Final thoughts
We hope we have helped you with the gist of how the refund process works. It may seem chaotic and confusing. However, Duty Refund can help you.
Initiate your claim in just a few clicks on our website, and our team of experts will make sure to assist you.