Reclaiming VAT/import duty on a returned purchase from the US

[john_coburg]

Afternoon all,
Does anyone have experience of purchasing a watch from the US, paying the VAT to import it and then wishing to return it? I called FedEx (who handled the importing originally) and they gave me a link to HMRC and a fairly vague form to fill out (C285 - Application for repayment/remission) - has anyone submitted this, and successfully got their VAT back? what evidence is required? a copy of the invoice of the item sent back? and are they cross-referenced to the item i received? it feels flaky and i'm nervous about it... does anyone have a success story to report, and/or any advice as to what to attach as 'evidence'?
Thank you vm.
John

[cheesycake7]

Just trying to help out here - I don't have such experience but I'm a qualified accountant so hopefully what I think won't be too far off.

The c285 form you've mentioned seems to be for businesses who import and pay import VAT (the form requires a VAT reg number, which I presume an individual won't have). There is an alternative form called c285CDS if you've used the customs declaration service to import (which is what I think is applicable for you).

The VAT rules states that UK residents need to pay VAT on overseas shopping above £3xx but I don't think it specifies whether a refund can be obtained if the goods are subsequently returned.

What I think you'll find helpful (and it did help me) is to call HMRC and explain the situation. I've had a relatively complex VAT refund issue that I was able to get to the bottom of by calling them.

[Antony23]

Afternoon all,
Does anyone have experience of purchasing a watch from the US, paying the VAT to import it and then wishing to return it? I called FedEx (who handled the importing originally) and they gave me a link to HMRC and a fairly vague form to fill out (C285 - Application for repayment/remission) - has anyone submitted this, and successfully got their VAT back? what evidence is required? a copy of the invoice of the item sent back? and are they cross-referenced to the item i received? it feels flaky and i'm nervous about it... does anyone have a success story to report, and/or any advice as to what to attach as 'evidence'?
Thank you vm.
John

I bought a track suit jacket from the States earlier this year, duty etc was just under £60.

I returned the item as it was too big, and set about claiming the duty back.

Sent everything required, and received a letter stating they’d refund my money by cheque within thirty days. They never did.

It took three letters from myself, three replies from them stating I’d have my money within 30;days, before I finally got it.

In total, took over six months!

Maybe, I was just unfortunate. But, they were a nightmare to deal with, as there’s no phone number and the letters often won’t even have a name of an individual at the bottom.

Good luck!

[john_coburg]

Just trying to help out here - I don't have such experience but I'm a qualified accountant so hopefully what I think won't be too far off.

The c285 form you've mentioned seems to be for businesses who import and pay import VAT (the form requires a VAT reg number, which I presume an individual won't have). There is an alternative form called c285CDS if you've used the customs declaration service to import (which is what I think is applicable for you).

The VAT rules states that UK residents need to pay VAT on overseas shopping above £3xx but I don't think it specifies whether a refund can be obtained if the goods are subsequently returned.

What I think you'll find helpful (and it did help me) is to call HMRC and explain the situation. I've had a relatively complex VAT refund issue that I was able to get to the bottom of by calling them.

Thank you very much for replying. It seems both C285 and C285CDS can be used by businesses or individuals. The former is to be used if CHIEF (the old customs declaration system) was used, and the latter is CDS (the new one) was used.

My problem is I can't tell (from the customs declaration papers) which was used. There's nothing obviously labeling it. I've tried to complete both forms (they're v similar), but the C285CDS asks for an MRN number (Movement Reference Number) which i can't see anywhere. The other form doesn't ask for it. Perhaps this suggests it was imported using CHIEF, rather than CDS.

It seems CDS replaced CHIEF in Dec '18, but is only slowly being rolled out... so i'm a bit stuck.

The import VAT is c. £500, so i really don't want to let this go.

So....do you (or indeed does anyone) know how to determine which import duty declaration service (CHIEF or CDS) was used for a particular import, to determine which form to use to reclaim the VAT?

They certainly don't make it easy!

Thank you very much,
John

[markrlondon]

They certainly don't make it easy!

It's bureaucracy. If they made it easy then they might risk there being less of a need for bureaucracy in the future. The function of bureaucracy is always, ultimately, to justify more bureaucracy. ;-)

I can only suggest calling HMRC and asking your question of them. You might get a helpful answer. or they might well act as if no one has ever asked the question before. In truth, I bet it doesn't really matter at all as to which form is used. But ask them all the same.

[cheesycake7]

It's bureaucracy. If they made it easy then they might risk there being less of a need for bureaucracy in the future. The function of bureaucracy is always, ultimately, to justify more bureaucracy. ;-)

I can only suggest calling HMRC and asking your question of them. You might get a helpful answer. or they might well act as if no one has ever asked the question before. In truth, I bet it doesn't really matter at all as to which form is used. But ask them all the same.

This. Call HMRC - the waiting time will be short as no one really calls them. The lady I spoke to was so excited to resolve my issue it also seemed like a puzzle she had to fix. Haha

[john_coburg]

This. Call HMRC - the waiting time will be short as no one really calls them. The lady I spoke to was so excited to resolve my issue it also seemed like a puzzle she had to fix. Haha

Agreed - just called them and they seemed helpful. Not come across the problem before (not sure how not... unless no one calls them) and we agreed it was the C285 form afterall - it was imported via CHIEF rather than CDS. To be honest, the whole thing seems almost 'set up' to be exploited... although it (rightly) warns of heavy penalties for false declarations.

Now the question is whether my £500 actually turns up back in my account or not...

Cheers, CHIEF!

[markrlondon]

^^^ Cool, glad you called and got a helpful response.