How to Find Hundreds of Pounds in Your Inbox

Does a quick look through your email inbox and finding unexpected money sounds like something only possible in your dreams? Well, it doesn’t have to be, if you know what and where to look for!

Due to Brexit, any order to the United Kingdom will now be charged with customs charges. The same holds for both private individuals and VAT-registered businesses.

Many people don’t realise that if you’ve returned and refunded your order within the past year, you can also get a refund of import VAT and duty. So those trainers you sent back three months ago? You might get at least hundreds of pounds back!

£106 is the average refund amount we helped our customers claim back since Brexit!

But how can you reclaim import duty if you’re unsure whether you are still eligible for a refund? Luckily for you, we’ve gathered all of the information and combined it into this detailed and helpful article on how best to look through your inbox for possible compensation that you might have missed.

Which orders should I look for?

Let’s set the scene. You’ve sat down to sift through your inbox to find the promised pounds. But, you are unsure which orders to search for in your email subject? Here are some key things to take into consideration.

In the UK, unless a package is returned or refunded, a private individual is not eligible for a refund of customs charges. However, if you plan to return or have returned any order from the EU within 365 days, you qualify for a refund of import VAT and duty.

You can get a refund for any goods bought and returned worth over £135. However, if you ordered excise duty such as alcohol or tobacco, this does not apply.

You can also get a refund of duty and VAT, if:

You’ve received a partial refund;
You’ve only returned one of the ordered items;
You didn’t return the items, but the seller refunded your money;
You’ve paid directly for taxes and never received the goods, but the seller sent you your money back.

If you fall under any of these conditions, look for any documents that can help prove that you’re eligible. Don’t forget to check the subject of each email from courier services, retailers, and the HM Revenue and Customs. You never know where some loose pounds may be hiding.

Are all customs charges refundable?

To know which charges are refundable, you first need to know what they are and how they are calculated.

Customs charges are a collective term for customs duty, import tax, and handling fees that need to be paid.

What are import duties?

Import duty is a tariff or tax charged on imports purchased outside the UK and Northern Ireland. This applies to goods shipped outside the EU and those exported from the EU but made overseas. The customs duty rate depends on the type and origin of imported goods, but you usually don’t have to pay it, if:

The imported goods are made in the EU;
The items are gifts or goods worth less than £39 (negligible value);
The goods are valued at less than £135.

What is import VAT?

Import tax is also known as the value-added tax or import VAT. It is a tax paid on goods bought outside the UK. Therefore, it is charged on all goods entering the UK. Usually, import VAT is set at 20% of the total cost of the item (including shipping cost).

Unlike duty, you must pay VAT for any imports, unless it’s a gift under £39.

What are excise duties?

Some imported goods like alcohol, tobacco, or fuel are classified as excise goods. When these goods arrive, they are taxed with a different tax called excise duty. This duty doesn’t have the same rate as import duty following the rules imposed by the HMRC, which is why they cost more.

Because these goods fall under different rules, you cannot refund excise duty. Be aware that you have to pay excise duty even for gifts, so you might need to make a different offset calculation!

What are handling fees?

Another type of additional charge is the handling fee. Also known as courier fees, these are charges made by delivery companies for processing your customs handling and payment. As each company has its policy on what they charge, this fee can vary from one company to another. It is also important to note that handling fees are non-refundable.

Courier company	Handling fee
DHL	£11 or 2.5% of duty+VAT, depending on which amount is higher
DPD	£5
Pacelforce	£11
Royal Mail	£8
FedEx	£12.5 or 2.5% of duty+VAT, depending on which amount is higher
UPS	£12.5 or 2.5% of duty+VAT, depending on which amount is higher

How to calculate import VAT and duty?

So, you’ve already returned the imported goods but want to check if you’ve paid the correct import charges? Here’s how to check if the math is correct.

As mentioned above, import VAT is pretty easy to calculate. This tax is set at 20% for most items. For certain types of goods, this fee might be higher.

Calculating customs duty depends on the goods’ type, value, and origin. When importing certain items, the HMRC uses trade tariff codes for international trade, known as commodity codes or HS codes, to calculate duty and VAT.

We’ve already mentioned that you don’t need to pay import duty if the goods imported are worth less than £135 (unless the goods are alcohol or tobacco). However, if the goods or gifts are valued at £135 to £630, the rate will be 2.5% or lower for some goods.

Consequently, what if the goods are valued above £135 and gifts above £630? The rate then depends on the type of good or the country of import. Hence, you must use the HS codes to get the exact rate.

Don’t want to calculate it by yourself? You can also check courier receipts. The receipts show details like how much you need to pay import VAT and duty. In case you lose the receipt, you can always contact the delivery service so that they can break down the customs charges accurately.

If you are still unsure, you can also use our online import duty calculator to check if your math is correct. Unlike many others, our Duty Calculator is free and very user-friendly. Here’s how:

Go to our website.
Visit our Duty Calculator page.
Enter product description and cost of purchase.
Select your courier service of choice.
Click “Calculate.”
And voilà – you get the results in just a few seconds!

So simple and super quick!

We should state that the HMRC decides all final decisions regarding the height of VAT and duty charges. So if you returned goods within a year, the good news is that both import duties and VAT are refundable if you know how.

How to turn your email into hundreds of pounds?

It can be a very long process if you want to reclaim customs charges on a returned parcel yourself.

While bureaucracy can be dull and complex, luckily, you can apply for a refund of duty and VAT with the help of a freight forwarder, an import agent, or a representative.

And that is where we – Duty Refunds – come in!

Duty Refunds can help you get a duty and VAT return as soon as possible. And our process is entirely online and pretty simple.

Reclaim import VAT and duty with Duty Refunds

You only need to give us the tracking or airway bill number, and our team of experts will do everything for you. Seriously, you don’t even have to lift a finger! When your claim is approved, we’ll get in touch with you to ask you for your bank account number so that we can transfer the money.

We charge a 15% commission fee from the total amount of your refund for our services, but only after we win the case for you. No win, no fee policy!

So, if you found anything in your inbox that will warrant a refund of duty and VAT but are unsure, here’s what you need to do:

Visit our website.
Fill out our easy-to-use online claim form.
Sit back and relax with some tea and biscuits.

Get your money back to your bank account in three to six weeks!

FAQ

What extra delivery fees do I have to settle post-Brexit when paying online?

Whether you live in England, Scotland, or Wales, customers need to pay extra fees when importing goods, like customs duties, import VAT, and handling fees to HMRC.

Currently, Northern Ireland is not under restrictions the same way the rest of Great Britain is. The territory of Northern Ireland is part of the EU Customs Union, whereas Great Britain is not.

Who is responsible for paying customs duty?

When you order from Europe to Great Britain and Northern Ireland, you as the customer are responsible for paying tax on all imports.

To speed up the process, this is usually done by the delivery service in charge of the delivery. They will clear the customs on your behalf to HMRC and then ask you to pay their services’ reimbursement and handling fee. Your parcel will be delivered after you settle the total amount on the courier’s receipt.

Can you reclaim import duty and VAT on returned goods?

Anyone who has bought and returned goods worth over £135 within the last 365 days is eligible for reclaiming duty and import VAT. You can apply yourself or have an agent or a freight forwarder do it for you. Unfortunately, excise goods such as alcohol and tobacco are not eligible for import duties and a VAT return.

If you want to check if you’re still eligible for a refund, please fill out our easy-to-follow online form.

What returned goods mean?

Returned goods are imports the customer will send back to the supplier on the contract date between parties.

Why do we return goods?

You can return goods for a specific set of reasons. Some common reasons why customers return merchandise include:

Unsatisfactory or defective product;
The incorrect fit of the product.

If you receive a faulty item, according to Consumer Rights Act, you have 30 days to reject the defective product and get a full refund where the retailer should cover the cost of the return.

However, there are many things to pay attention to when you want to return clothes to Europe. Luckily, if you need detailed guidance, we’ve prepared this helpful article.

How to get a refund of customs charges?

Start the process right away by filling out our form! Our team of experts will take care of everything and get your money back in three weeks!

Can I get a refund of customs charges on my own?

Yes, you could embark on this journey by yourself. However, many people don’t complete the process, as quite a lot of information and documents are needed.

First things first, look into your inbox for any of these documents:

A return confirmation from the seller, proving that the returned item or goods are no longer in the UK.
A proforma invoice from the seller stating why you are returning the goods.
Transport documents from the delivery service that delivered/returned your parcel, like a packing list, import declarations, entry advice, a list of itemised taxes, and the shipping invoice.

If you can’t find a document, ask the seller or the delivery company to send you a copy. Also, look for the order’s tracking ID or airway bill number so that the delivery service can find you easier.

If you find the document, head to the gov.uk website and fill out the main customs form from the HMRC. There are many different customs declaration forms on the website, each serving a specific purpose. Make sure to find the one you need and fill out all the necessary details.

As previously stated, applying for a duty and VAT return is long and complex. Plenty of things can go wrong, so you need to be extra careful. Otherwise, you can kiss your £106 goodbye!

Thankfully, there is a way to bypass the paperwork altogether. Contact Duty Refunds for help getting your money back!