The UK’s vote to leave the European Union has thrown up a lot of questions for consumers, and one of the main topics of concern for consumers has been what this will mean for their rights when returning goods from the UK to the EU after Brexit.
Many people are unsure about what they need to do when returning clothes and other items bought from EU retailers, so we’ve put together this guide to help you out.
In this blog post, we’ll discuss the rules of returning goods, who pays for returning them, and how to reclaim import VAT and customs duties on returned items.
The rules of returns
Different laws apply when you shop online from the EU retailer and when you shop online from the UK retailer. If you are shopping online for goods from the EU, EU laws and consumer rights apply, so for more detailed information, take time to read their terms and conditions.
Firstly, it’s important to know that you have the right to return goods within 14 days of receiving them for full repayment under EU law. According to terms and regulations, it applies to all items, regardless of whether you bought them in-store or online, whether they are faulty or just don’t fit.
In order to send back an item, you will need to notify the retailer that you wish to return the item within 14 days of receiving it.
You then have a further 14 days to actually send back the item.
The returning process may differ depending on whether you bought the item online or in-store, so it’s always best to check with the sellers beforehand.
Who pays for returns?
When a UK buyer orders goods from an EU retailer, they are responsible for paying for the shipping costs if they wish to send back the goods. This is because, under UK law, the sellers are not required to provide repayment for shipping costs. However, many retailers do offer free returns as a goodwill gesture, so it is always worth checking with the retailer before you make your purchase.
Moreover, you do not have to use the same postal service that delivered the goods, but any that you prefer. We recommend using either Parcelforce or Royal Mail due to their lower delivery prices and great service.
When returning goods and buying postage from Parcelforce, you will be asked to complete a customs declaration, in which you will have to state the nature of the goods. Make sure to select that these are returned goods.
If this is not done, the seller will most likely be asked to pay for import VAT (value-added tax) and other charges once the goods arrive back in the EU country from the UK. If the seller refuses to pay the charges, you will have to pay for additional shipping and miss out on claiming back duty and VAT.
Ask the retailer for proof of refund
Once you have returned the package and the retailer has processed them, you should receive a payment within 14 days from the date sent.
However, if you do not receive a repayment within this time frame, we recommend contacting the retailer and asking for proof of repayment. This paper will also be needed to file for an import VAT and taxes repayment on returned goods (which we will discuss later).
Keep your courier documents
When returning goods, you should always keep your courier documents as they will be needed to claim back VAT and other taxes. These documents include a customs declaration with the breakdown of customs duties and other charges you have paid to customs authorities in the UK.
You will most likely receive these documents along with the package. Depending on the postal service, they might be delivered later upon request.
Reclaiming customs duties
If you are returning goods from the UK to an EU country, you may also be eligible to reclaim the import VAT and customs charges that you paid on the goods. To do this, you will need to complete an import VAT refund form and send it to HMRC, along with your refund confirmation from the seller and customs declaration.
However, the process is not so simple – in case of any mistakes, HMRC will most likely not notify you, leaving you in the dark about the status of your claim. Moreover, figuring out which documents are relevant and where to find the information to fill the claim is challenging. Many UK customers give up and miss out on reclaiming a considerable amount of money for their purchases.
This is where we come in! At Duty Refunds, our team of experts will help you claim back your duties and VAT.
Claim customs duty on returned goods with Duty Refunds
If you have any questions or need help with returning goods to the EU from the UK, our team at Duty Refunds is always happy to help. We are familiar with the ins and outs of the process and can get you your money back in just three weeks.
All we need from you to file the claim for the return of import taxes and duties is the tracking/waybill number and contact details. Our experts will contact the courier to get all the relevant papers and information and will fill in the VAT refund form for you. We will also follow up with HMRC on the status of your claim, so you can focus on other things.
Don’t get confused with returned goods relief
UK customers often get confused by returned goods relief. If you are a UK customer, you can’t apply for the returned goods relief, as it refers to returns of goods whose original export was from the UK. In this situation, a foreign customer does not need to bear the cost of re-importing goods as long as they return the item within three years from the original export.
For further information, read more about the EU-UK trade agreement and how it changed conditions in international trade.
Additionally, you don’t need a returned goods relief to reclaim import VAT on returns.
Final thoughts
The good news is that UK customers can get their money back on items returned to an EU country after the Brexit transition period. In order to do so, they just have to be aware of their consumer rights and take the right steps.
Firstly, always ask for a refund confirmation from the seller – this document will be needed when claiming your money. Secondly, keep all courier papers relating to the shipment – these will help prove that you paid the correct customs charges and allow you to reimburse the cost.
Finally, contact Duty Refunds as soon as possible after returning the item so we can start filing your claim. We hope this article has been helpful and wish you a happy shopping!