How to Reclaim Customs Charges with Duty Refunds (Safe & Simple)

Can you claim import duty and VAT return in a post-Brexit transition period in the UK? Though it does seem impossible, the opposite is, in fact, true. 

Especially if you use a service like Duty Refunds.

Today we will show you how to quickly and safely reclaim customs charges on returned goods, and we will cover:

• What are customs charges
• What does the process of reclaiming import charges entail
• How can you claim duty and VAT returns

By the time you finish reading this practical and comprehensive guide, you’ll know everything you need to reclaim import duty and VAT successfully. Without further ado, let’s get started!

What are customs charges?

Before our guide begins, we must first go over some fundamental things.

Customs charges are a collective term for taxes that must be paid when you import something to the UK. These are:

• Customs duty
• Import VAT and 
• Handling fees.

What is customs duty?

Import duty is a tariff or tax on goods imported outside the UK. The duty applies to:

1. Goods shipped outside the EU and 
2. Goods exported from the EU but made overseas. 

The rate of import duties depends on the type, value, and origin of imported goods. There are certain situations when you don’t have to pay it:

• The imported goods are produced in the EU; 
• The parcel contains gifts or goods worth less than £39 or of negligible value; 
• The imported goods have a value of less than £135.

What is import VAT?

You might have already heard of the import tax or import VAT (value-added tax). This tax is paid directly on imports bought outside Great Britain and entering the country. 

The tax is usually rated at 20% of the total cost of the good, which also includes shipping costs. You also need to pay it on any import, unless it’s a gift valued under £39.

There is also regular UK VAT, which is not to be confused with import VAT. Regular UK VAT is paid on the goods purchased domestically. You first settle it to the supplier, who then pays it to HMRC. Import VAT is usually paid to the courier service that delivers your parcel.

What is excise duty?

Excise duty is taxed on items classified as excise goods, e.g., alcohol, tobacco, or fuel. The purpose of this tax is to limit the use of products damaging to health and the environment.

As such, these products are taxed at a different rate, which is why they wind up costing more. It also means that these imported goods fall under different rules, meaning you cannot refund them and always have to pay the fee, even for gifts. 

What are handling fees?

Handling or courier fees are an additional type of charge. The delivery companies charge these fees as compensation for processing your customs handling and payment. They also vary from one company to another. Handling fees are also non-refundable, as they are service fees.

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

How did Brexit change UK customs charges?

Pre-Brexit, many UK shoppers didn’t have to worry about import taxes, duties, and handling fees when ordering from the EU. As a member of the EU, the UK was also part of the EU Customs Union, where there were no tariffs between the members.

However, post-Brexit transition period, the story is now different. Additional fees will accompany any online shopping that you do now. You cannot avoid customs charges whether you are a VAT-registered business or a private individual.

The HM Revenue and Customs regulate these fees. They are the final decision-makers in all things related to this topic – how high will the import VAT and duty be; do you need to settle other charges; will the imports be taken to a customs warehouse, etc. What they don’t decide, though, is how high the handling fees are, as the courier companies determine these. 

When do you need to settle import VAT and duty? Here is a quick summary:

• You pay import VAT on purchases and gifts valued at £39 to £135.
• You pay customs duties and import VAT for goods worth over £135.
• If the parcel or gift contains certain goods (e.g. alcohol or tobacco), you will need to pay excise fees. 

While import VAT is usually set at 20% of the total value, how much you will pay for duty depends on the value of the purchased items, their type and the country of origin. To know how much you have to pay for import duty, might we suggest using our duty calculator? It is very user-friendly and quick!

If you live in Northern Ireland, you may be subject to other rules regarding import taxes and duties. Northern Ireland is part of the UK VAT system and the EU Customs Union. 

According to the source, you may have to pay import VAT when you import goods into Great Britain from outside the UK or from outside the EU to Northern Ireland. If you live in Northern Ireland and purchase anything from Great Britain, that is treated as a UK domestic sale, so you will pay VAT. When importing goods to Northern Ireland from the EU countries, there is no difference from imported goods into Great Britain. 

Who is eligible for a refund of customs charges?

Though Brexit has made online shopping tricky, there is a silver lining. If you live in the UK and plan to return or have returned any order worth £135 from the EU within the past 365 days, then you are eligible for a duty and VAT return. 

Now, you can get a refund of customs charges for the following circumstances as well:

1. You’ve returned the goods to the seller and only received a partial refund.
2. You’ve only returned one of the ordered items to the retailers.
3. You didn’t return the items, but the seller refunded your money anyway.
4. You’ve paid the taxes for the goods you’ve never received, but the seller refunded your money.
5. You believe you were overcharged for import duties and VAT.

Are all customs charges refundable?

Now, as a private individual who has bought and returned goods valued at over £135, you are eligible for a refund of import duties and taxes. But, not all customs charges are refundable. 

Handling fees, for instance, is a “convenience” fee charged by courier services. They charge it for delivering your parcel and managing duty payments on your behalf. As such, you won’t receive a refund for this fee. 

We’ve already mentioned that the goal of excise duty is to limit the use of products that are harmful to the health and environment, like alcohol, tobacco, and fuels. As such, you can’t get your money back for this fee.

Why don’t more UK residents go through the process?

If you want to claim import VAT and duty refund, you can start the process yourself. You will need to submit the following documents to the HMRC:

1. The reason for a refund request, 
2. Proof that you paid the customs duties and VAT, 
3. A copy of the invoice for the returned goods, 
4. Proof of returned goods from the retailer, 
5. Documents from the courier company showing that the imports are no longer in the UK
6. A thoroughly completed HMRC customs declaration service form.

However, this process can be long and arduous. It could take up to six weeks to get your money back if you filled everything correctly! If your claim gets rejected, the HMRC is not obligated to contact you. 

Luckily for you, in the UK, you can ask a freight forwarder or an agent to claim a refund on your behalf. 

How can you reclaim the import VAT and duty with Duty Refunds?

At Duty Refunds, we can help you get a refund of customs charges. We are the UK’s leading import duties and VAT return specialist. And our service is easy, efficient, and secure.

Here is how our process works:

Check eligibility for duties and VAT return

The first step is to check if you are eligible for import duty and VAT return. To do that, visit our website and go to the page “Reclaim customs charges” under the drop-down menu Services. 

On the page, you will see a button “Claim Now”. The button takes you to our easy-to-use online form. 

By filling out simple questions, the form is our way to check if you are still eligible for a refund and the amount of money you can receive.

Initiate the reclaim process

To start the process on your behalf, we only need to know:

• Your email and other personal details,
• Cost and description of the import goods, 
• Tracking or waybill number of the order and 
• The courier company you used.

You can fill these pieces of information in our online form. You will also be asked to upload proof of a refund from the supplier. 

Give us your case!

Once we’ve checked if you are eligible, our team of experts will contact you. 

You can easily upload all the paperwork to your account on our website to help us initiate the claim, like the customs declarations or courier documents, the main customs form, import declarations, packing list, etc. 

If you do not have the courier documents, don’t panic! We can send the request to the courier in your name with the tracking or airway bill number. 

We will take full responsibility for your case, complete the paperwork for you, and submit the refund claim to the HMRC. 

It usually takes us three to six weeks to get your money back.

Enjoy your refund of customs charges!

When your claim is approved, we will notify you about the outcome. Afterward, we will ask for your bank account number, where you will receive your money. 

The only thing we ask for our service is a small commission fee. Our commission is 15% of the total amount of your refund. However, we are firm followers of the “No win, no fee policy!”. We only charge the fee after we win the case for you. 

Pretty straightforward and clear. 

Final thoughts

As you see, getting a refund of customs charges can be complicated. But it’s not impossible. With the help of Duty Refunds, you only need to sit back and let us take care of everything for you!

Our service is user-friendly, efficient, and pretty straightforward. And the only thing you have to do is fill out our online form, sit back, and enjoy.