International returns: getting import duty and VAT back (UK, EU, Canada, US)
When a buyer abroad sends an order back, the duty and VAT paid when it arrived are not refunded automatically. Who can claim depends on who paid them, and some charges cannot be refunded at all. Here is what the official guidance says for the UK, the EU and Canada, plus how to bring the returned parcel home without paying duty again.
First: who paid, and who can get it back?
| How the tax was paid | Who refunds or claims |
|---|---|
| VAT you or the marketplace charged at checkout (UK orders of £135 or less, EU orders under IOSS) | You or the marketplace refund it to the buyer with the price, then correct the VAT return. HMRC and EU customs do not refund it. |
| Duty and import VAT the buyer paid on delivery (DDU) | The buyer (the importer) claims from customs, usually with the carrier's paperwork and your proof of refund. |
| Duty you prepaid through a DDP label or service | Whoever was the importer or declarant on the entry, often the carrier or postal operator. Ask them before the item is sent back. |
This table is our plain-English summary of the rules below, not official wording.
Returns from UK buyers
Only the importer or someone acting for them (a representative, customs agent, freight forwarder or express operator) can claim from HMRC, and repayments go to a UK bank account. VAT-registered importers adjust import VAT in their VAT return instead. If UK VAT was charged at the point of sale (orders of £135 or less), HMRC says the seller or online marketplace should refund that VAT, not HMRC.
For parcels delivered by Royal Mail or Parcelforce, the UK buyer claims with form BOR286, sent to Border Force in Coventry with the customs charge label, the customs declaration, proof of value (for example an eBay page or PayPal receipt) and, for returned goods, evidence of the refund and a certificate of posting. For any other courier, the form is C285.
In the UK, HMRC can repay or waive import duty on goods the importer rejects because they were defective, damaged before customs clearance, or did not match the contract. The goods must not have been used (beyond what was needed to find the fault) or sold, and must be re-exported or destroyed. The claim (online, or form C&E1179) is due within 1 year and, per HMRC, at least 48 hours before the goods are packed for re-export or destruction. HMRC aims to decide within 30 days. You cannot claim if you knew about the defect when the sale was agreed.
HMRC time limits: 3 years for overpaid duty and VAT, 1 year for rejected imports, 90 days for withdrawing an import declaration. A claim must be worth more than £9 per import declaration (goods imported after 31 December 2020).
Returns from EU buyers
EU orders sold with IOSS: when goods come back, the seller refunds the VAT to the buyer with the price and corrects its IOSS VAT return (netted in the same month, or as a correction in a later return). The Commission says the import declaration does not need to be invalidated for this; proof such as the return messages, the refund and proof of export can support the correction.
Since 1 July 2026, the declaration for goods sold at a distance in consignments of €150 or less can no longer be invalidated just because the goods were returned after release. So the €3 duty is not refunded through that route. The general refund grounds (for example defective goods or goods not matching the contract, Article 116 of the Union Customs Code) still apply.
From 1 November 2026 a Union Handling Fee of €2 per distinct item will apply to B2C e-commerce goods arriving from outside the EU, at any value. It is in addition to the €3 duty, cannot be refunded (even on returns), and does not apply to private gifts. The Commission adopted the €2 amount on 21 September 2026, but it still has to pass European Parliament/Council scrutiny and be published in the Official Journal.
For distance sales above €150, the Commission's 2022 returns note says the declarant can ask to invalidate the import declaration within 90 days of its acceptance if the goods are exported back to the seller's address, and that is how import duty (and in many countries VAT) is repaid. Only the declarant, often the carrier or postal operator acting for the buyer, can apply. We have not been able to check the current consolidated legal text, so confirm with the carrier.
Orders of €150 or less without IOSS (the buyer paid import VAT to the carrier or post): refunding that VAT is mainly a national matter. Depending on the EU country, it may require the import declaration to be invalidated or follow separate VAT rules, and the carrier or postal operator usually has to make the request. Check the carrier's returns process before the buyer sends the item back.
Returns from Canadian buyers
Canada: a buyer who paid duty and tax and then sent the goods back to a seller outside Canada can ask CBSA for a refund using form B2G (or the back of postal form E14). They must attach the sales receipt, the customs accounting document (E14 for mail, the courier receipt for courier), the seller's credit note, proof the duties and taxes were paid, and proof of export. A tracking number alone is not enough: include the packing slip and a printout of the official tracking. Claims go by mail to a CBSA Casual Refund Centre.
CBSA time limits: most refund requests within 4 years of importation (1 year for changes to tariff classification, value or origin on mail; 3 days for defective perishable goods). CBSA aims to process requests within 30 business days, and approved refunds arrive by Government of Canada cheque in 4 to 6 weeks.
Returns from US buyers
We have not yet checked how US duty is recovered when a buyer returns a DDP order (for example through a refund by the carrier or a CBP drawback claim), so we do not give figures here. Ask your DDP carrier or service how they handle returns before you accept one. The rules for bringing the item back into the US are below.
Bringing the return back into your own country
The returned parcel is an import into your country, so it can be charged duty and VAT unless a relief is claimed.
UK Returned Goods Relief: goods exported from the UK can get relief from import duty when they come back, if they are re-imported within 3 years and unaltered. The relief should be claimed at the time of import. VAT relief also needs the exporter and the importer to be the same person. For a return by post, ask the sender to write "Returned goods — relief claimed" on the package and its customs declaration (CN22/CN23), with a full description, quantity and value, and your VAT number if you are VAT-registered. Keep evidence of the original export, such as the export invoice or certificate of posting.
The EU also has a returned goods relief for goods that come back after export. The procedures are run by each member state's customs authority.
United States: goods returned to the US can enter duty-free under HTSUS subheading 9801.00.10 if they were not improved or increased in value abroad. US-made goods have no time limit; foreign-made goods must come back within 3 years of export. For returned shipments over US$2,500, CBP rules require declarations by the foreign shipper and the importer.
We have not yet covered Canada's rules for goods returned to Canada.
Seller checklist for international returns
- Before accepting the return, find out who paid the import charges (you, the marketplace, the buyer or the carrier) and tell the buyer what you will refund.
- Issue a dated credit note or refund receipt showing the item, quantity, value and payment method. Canadian buyers need one for a CBSA claim, and UK buyers for form BOR286.
- Ask the buyer to keep the certificate of posting and the full tracking printout of the return (a tracking number alone is not enough for CBSA).
- For returns to the UK, ask the buyer to mark the parcel and the CN22/CN23 "Returned goods — relief claimed" and to describe the item fully.
- Keep your original export proof (label, certificate of posting, invoice) so you can claim returned goods relief.
- If you charged VAT through IOSS or UK VAT at the point of sale, refund it with the price and correct your VAT return.
Selling to the EU? The €3 duty and the planned €2 handling fee are explained on our UK → EU and US → EU guides. Shipping to the US from the UK? See our Etsy DDP guide for UK sellers.
The Commission's guidance and returns note are explanatory and not legally binding; the legal texts take precedence. This page is general information, not legal, tax or customs advice. Refund rules depend on the exact circumstances, so check with the customs authority or your carrier. See the disclaimer.
Sources for this page
- Claim a repayment or remission of charges on rejected imports (C&E1179), HMRC / GOV.UK. Accessed 21 Oct 2026. Verified
- Refunds and waivers on customs debt by HMRC, HMRC / GOV.UK. Accessed 21 Oct 2026. Verified
- Report incorrect Customs Duty or VAT on items imported by post (BOR286), HMRC and Border Force / GOV.UK. Accessed 21 Oct 2026. Verified
- Form BOR286: Customs Duty and/or import VAT relating to imports by post (09/22), HMRC / GOV.UK. Accessed 21 Oct 2026. Verified
- Non-paper on the customs formalities related to the return of goods in the context of e-commerce (Ares(2022)7986861, explanatory, not legally binding), European Commission, DG Taxation and Customs Union. Accessed 21 Oct 2026. Verified
- The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade (version of 5 Oct 2026), section 8 Product identifiers, European Commission, DG Taxation and Customs Union. Accessed 21 Oct 2026. Verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 20 Oct 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- Request a refund or adjustment of duties and taxes paid: Get your refund request ready, Canada Border Services Agency. Accessed 21 Oct 2026. Verified
- Request a refund or adjustment of duties and taxes paid: Submit your refund claim, Canada Border Services Agency. Accessed 21 Oct 2026. Verified
- Pay less import duty and VAT when re-importing goods to the UK (Returned Goods Relief), HMRC / GOV.UK. Accessed 21 Oct 2026. Verified
- Requirements for Importers and Brokers Regarding HTS Subheading 9801.00.10: U.S. and Foreign Goods Returned, U.S. Customs and Border Protection. Accessed 21 Oct 2026. Verified
- 19 CFR 10.1: Domestic products; requirements on entry, eCFR (U.S. Code of Federal Regulations). Accessed 21 Oct 2026. Verified
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