Guidance

VAT and overseas goods sent to the UK and returned to the seller

How sellers of goods sent from abroad to customers in the UK should deal with UK VAT if the goods are returned to them.

• From: HM Revenue & Customs
• Published: 25 March 2021
• Last updated: 8 March 2023 — See all updates

How you deal with the VAT on goods sent back to you from customers in the UK depends on:

• where the goods were originally sent from
• when you originally sent the goods
• how much the goods were valued at
• when the goods were returned to you
• if you’re registered for UK VAT

Goods sent to the UK on or before 31 December 2020 and returned for a refund after that date

Goods sent from outside the EU

You do not need to make an import VAT adjustment on your VAT return.

You may be able to reclaim the import VAT if both the following apply:

• the goods were valued over £15
• you paid for the import VAT under the previous import rules

Find out more about refunds and waivers on customs debt.

Goods sent from the EU

Adjust your UK VAT return if you accounted for UK VAT on the original sale.

You do not need to amend your VAT return if you did not originally account for UK VAT.

Goods sent to the UK on or after 1 January 2021 and returned for a refund

Adjust your VAT return for the VAT on the returned goods if you originally charged VAT and have refunded it to the customer.

You do not need to amend your VAT return if you did not originally charge VAT.

Goods returned from the UK and replaced

If a customer returns goods to you and you send a replacement you should make an adjustment on your VAT return if the value of the goods are different.

Find out more about the replacement of returned goods in section 18.3 of VAT Notice 700.

Published 25 March 2021
Last updated 8 March 2023 + show all updates

1. 8 March 2023

   Added translation

2. 25 March 2021

   First published.