How to avoid customs charge from the EU or USA to the UK?
Before Brexit, buyers in the UK were free to purchase items from anywhere in the EU without having to pay import duties and customs charge. But that changed when the UK left the EU in 2021. Now, if you’re in the UK and buying goods internationally, you will need to pay import VAT and duty on purchases above £135.
How much duty do I have to pay on international purchases?
Import VAT will be calculated on the total cost of the item, and shipping and handling costs. The usual UK Import VAT rate is 20% and this will be calculated after you’ve made your purchase.
Customs duty can vary from 0-25% depending on the type of product. For this reason, it’s always a good idea to check with the retailer before you decide to buy. Use this handy calculator to work out what customs fees you might have to pay.
What is the Rules Of Origin agreement and how does that help?
The “Rules Of Origin” agreement between the UK and the EU says that you don’t have to pay customs charges on products that the EU manufactures and produces. You will need to ask your retailer to provide you with an origin declaration to prove that the product you’re buying was EU-made. And you will still need to pay VAT.
How can I avoid customs charges from the EU to the UK or the USA to the UK?
1. Pay less for your items
One obvious way to avoid the charges is to always try and buy items worth under £135. Work out whether it’s even worth it to buy the item overseas once you take the additional costs into account. Could you get the item closer to home and avoid the hassle of international costs?
2. Break it down
Consider breaking down your order into two parts so you can keep the individual cost to under £135. Can you get the items in different places or stagger your order?
Reclaim your duty and tax when you return them
Under EU rules, a trader is obliged to repair, replace, reduce the price, or give you a refund if goods you bought turn out to be faulty in some way. You are also allowed to return any goods bought online (with one or two exceptions) for any reason within a standard 14-day cooling-off period. You can do this even if you have just changed your mind.
Any refund you receive must include the shipping charges you paid when you made the purchase. However, it’s worth bearing in mind that the retailer might charge you delivery costs if you asked for non-standard delivery (such as express delivery).
This claim should be made within 90 days of the import date for unwanted items and up to a year from the return date for damaged and defective items.
How do I get my duty refund?
There are currently two ways to reclaim the duty refund. The traditional approach involves contacting your courier and completing HMRC paperwork. However, this process is incredibly time-consuming and painful. Moreover, one mistake in filing the paperwork could mean that your claim is rejected.
A better way is to use a digital service, such as Duty Refunds. With Duty Refunds, all you will have to do is initiate your claim by filling out an online form in 5 minutes, upload a few documents, and that’s it. We’ll sort your claim out, dedicate a case handler to you, and get your money back in just 4 weeks!
Why use a digital refund service?
Duty Refunds will pursue your claim on a no-win, no-fee basis, with an advisor taking all the necessary details and completing the forms on your behalf. Doing it this way will cost you just 15% of the refund money after you make the claim and get the money.
How can Duty Refunds help?
Duty Refunds is the first and only online import duty and tax refund platform for UK shoppers. We have simplified the otherwise complicated and time-consuming process of refunding your customs charge on returned goods so that you can do your international online shopping with more confidence.
Duty Refunds has helped customers refund their purchases amounting to half a million pounds and is rated 4.8 excellent on Trustpilot. We also work extremely closely with courier companies (such as, DHL, DPD, Fedex and Parcelforce) and HMRC.
