| Goods returning to the EU | relief from duty if re-imported within 3 years, unaltered, with proof they are the same goods |
| Customs declaration | always needed for returned goods |
| UK: rejected imports | claim back duty and import VAT within 1 year |
| UK: VAT on sales up to £135 | the seller refunds the VAT to the customer |
| UK refunds | paid only into a UK bank account |
| Not refundable in the EU | the Union handling fee on distance sales |
Why a return now counts twice
Since 1 January 2021 the United Kingdom has been outside the EU customs union. Every item you send from the EU to England is an export from the EU and an import into the UK. When the customer sends it back, that is an export from the UK and a new import into the EU. Without a special rule, duty and import VAT would fall due again on the way back, on goods you made or bought yourself.
Both sides have such rules. In the EU they are called returned goods relief; in the UK there is repayment for rejected imports. Which one matters to you depends on whether you are a seller or a private buyer, and which way the parcel is travelling.
For sellers: goods coming back from the UK
Your British customer sends the goods back to you in the EU. This is how the re-import stays free of duty:
- 1
1. Watch the deadline
Returned goods must generally be re-imported within three years of export. For customer returns that is rarely a problem; for trade-fair stock and consignment stock it can be.
- 2
2. Unaltered goods
The goods must come back in the state they left in. Work done only to keep them in working order is fine; an upgrade is not.
- 3
3. Prove it is the same item
You must show that exactly these goods were exported before: export declaration, invoice, serial numbers, photos. No proof, no relief.
- 4
4. File a customs declaration
Returned goods are always declared for release into free circulation, in practice by your forwarder or the parcel carrier.
- 5
5. Check the import VAT
Whether import VAT is waived as well depends on the conditions your own customs and tax authority applies to returned goods. Ask before you rely on it, especially if the original export was zero-rated.
For sellers: what happens to the British VAT
On consignments up to £135 to British consumers you charged UK VAT at the point of sale. If the goods come back, HMRC expects the seller or the marketplace to refund the VAT to the customer. That has to be recorded properly in your UK VAT accounts; how the registration works is explained in VAT and the UK after Brexit.
On consignments over £135 your customer or their carrier paid duty and import VAT on import. If the goods are faulty, not as ordered or damaged before customs clearance, the importer can claim a repayment in the UK, for rejected imports within one year. Private individuals use the online form C&E1179; VAT-registered businesses correct the import VAT on their return. Repayments go only to a UK bank account.
HMRC does not explicitly describe this route for pure change-of-mind returns without a fault. If you have a lot of those, build the model differently, for instance with a British returns address so the goods never have to cross the border again.
For private buyers: sending an order back to Britain
You ordered from a British shop, paid import VAT and perhaps duty at home, and you do not like what arrived. Sending the parcel back does not make those charges disappear on its own. You claim them back from your own customs authority, with the duty notice, the invoice and proof that the goods went back. Deadlines and forms are set nationally, so check your authority's website before you post the parcel.
Two items you will not see again. The Union handling fee of €2 per item category, charged on distance sales since 1 November 2026, arises when the declaration is accepted and is not refundable. And the fee your carrier charged for handling the clearance is its own charge rather than a duty, so do not count on getting it back. Factor both in when you order from the UK.
And the British VAT the shop charged at checkout? On a return the seller must refund that VAT as well; HMRC says so explicitly. If the shop refuses, take it up with the shop, not with customs.
Who refunds what?
Depending on direction and role, a different office is in charge:
| Situation | Who deals with it | Deadline or note |
|---|---|---|
| Goods come back to you from the UK (seller in the EU) | customs on re-import, as returned goods | within 3 years, proof of identity, customs declaration |
| Your British customer returns faulty goods (over £135) | HMRC, on the importer's claim | 1 year for rejected imports, refund only to a UK account |
| Your British customer returns goods (up to £135) | you as the seller, or the marketplace | refund the VAT to the customer |
| You send an order back to the UK (private buyer in the EU) | your own customs authority | national deadlines and forms; Union handling fee not refundable |
GOV.UK (HMRC); EU customs rules as of November 2026
Questions about returns and refunds
Do I get my import VAT back if I return goods to a UK shop?
You can claim it from your own customs authority with the duty notice, the invoice and proof of return. The authority decides case by case under national rules. The Union handling fee is not refundable.
Do I pay duty as a seller on returns from the UK?
Not if the goods qualify as returned goods: unaltered, re-imported within three years, with proof they are the same goods, and with a customs declaration.
How much is import VAT in the UK?
Import VAT follows the UK VAT rate for the goods; the standard rate is 20 %. VAT-registered businesses can declare it on their return through postponed VAT accounting instead of paying at the border, see UK customs after Brexit.
Is there a refund form in the UK?
Yes: private individuals and importers without an EORI claim repayment on rejected imports with the online form C&E1179. VAT-registered businesses correct the import VAT on their VAT return.
Sources: GOV.UK: EU business, EU Returned Goods Relief; GOV.UK: Claim a repayment or remission of charges on rejected imports; GOV.UK: How to claim a repayment of import duty and VAT if you've overpaid; GOV.UK: VAT and overseas goods sold directly to customers in the UK
