E-commerce returns from UK — avoid paying duty and VAT twice [2026]

Why an e-commerce return from UK is a second import — and why you pay twice if you do nothing

Since Brexit, goods moving between the UK and the EU need customs formalities in both directions. When a customer in Manchester sends back a jacket bought on Etsy, or a consumer refuses a parcel from Amazon UK, the goods travel back to Poland. From the Polish customs office's point of view — in Gdynia or Poznań — this is a new import from a third country: import duty (where applicable) and Polish import VAT (standard rate 23%) are due unless a relief is claimed.

It does not matter that the same item left your warehouse a few weeks earlier. If the import declaration in Poland does not claim a relief, duty and VAT are charged as on any other import.

There are four routes that let you either avoid the second charge or recover charges that were overpaid. The decision tree below helps you pick the right one for a given scenario.

Four routes for an e-commerce return from UK — decision tree

Before you write anything on a declaration, answer three questions: (1) are the goods physically coming back? (2) where did the overpayment occur — in the UK or in Poland? (3) was there a declaration error, or a lawful clearance without relief? Three answers point to one of the four routes.

For most Polish e-commerce sellers, route 1 (returned goods relief) is the default. The other routes cover charges paid in the UK and higher return volumes.

Route 1: Returned goods relief (RGR) at re-import into Poland

Returned goods relief is the key relief for e-commerce sellers. On the EU side the legal basis for duty relief is Article 203 of the Union Customs Code (UCC); VAT relief on reimportation follows Article 143(1)(e) of the VAT Directive (2006/112/EC), implemented in Polish VAT law. The UK has its own equivalent for goods coming back to the UK — see GOV.UK: Pay less import duty and VAT when re-importing goods.

We cover the full procedure in a separate spoke — Return of goods from UK (Returned Goods Relief). Here we summarise the conditions and traps that matter for e-commerce.

RGR conditions in 2026

• 3-year window — goods must return within three years of leaving the EU (count from the export confirmed by IE599, not from the sale date).
• Same state — goods may have been used, but must not have been processed, repaired or upgraded. Goods sent abroad for repair fall under Outward Processing, not returned goods relief.
• Who re-imports — duty relief does not depend on who re-imports, but VAT relief applies to reimportation by the person who exported the goods. In B2C sales the exporter was the Polish seller; where the goods were sold to the UK customer, VAT relief generally depends on the sale being cancelled (for example a return with a refund).
• Proof of export — the MRN of the original export declaration (confirmed by IE599) is quoted on the re-import declaration. Keep IE599 on file; without proof of export the relief can be refused.

Procedure code

On the import declaration the declarant uses a re-importation procedure code together with the additional procedure code for returned goods relief (F01 for duty relief) and quotes the export declaration as proof of export. The exact codes are chosen after reviewing the original export declaration.

VAT trap: who carried out the export

If company A made the original export to the UK and company B re-imports the return (for example another company in the same group), duty relief may still apply, but VAT relief generally will not, because it is tied to reimportation by the person who exported the goods. Import VAT is then payable and, for a VAT-registered business, is normally deducted through its VAT return — which still affects cash flow.

Route 2: UK repayment of overpaid charges (CDS or C285)

If charges were overpaid on the original UK import, the UK importer can claim a repayment. Importers with an EORI claim through the Customs Declaration Service, where the declaration was made; form C285 is used by private individuals and people without an EORI. VAT-registered businesses cannot reclaim overpaid import VAT this way — they adjust it on their VAT return. Basis: GOV.UK: How to claim a repayment of import duty and VAT if you've overpaid. Full detail in the spoke — Customs value refund from UK — C285 procedure.

Typical C285 scenarios in e-commerce

• Inflated value — the customs value on the UK declaration was higher than the real transaction value, so too much duty and VAT was collected.
• Unrecognised TCA preference — the goods qualified for a zero rate under the EU–UK Trade and Cooperation Agreement, but the declarant did not claim the preference.
• Wrong HS tariff — goods classified at a higher duty rate than they should have been.
• Goods rejected by the UK customer — defective, damaged before clearance or not as ordered: this is a rejected imports claim (route 3), not an overpayment claim.

Deadlines

Claims for overpayments must be made within 3 years, claims for rejected imports within 1 year, and withdrawal of an import declaration within 90 days. HMRC aims to make a decision within 30 days and may ask for supporting documents such as the import invoice.

Route 3: rejected imports in the UK (and when BOR286 applies)

When a UK customer rejects goods because they are defective, damaged before clearance or do not meet the contract, the UK duty and import VAT can be reclaimed as a rejected import — through CDS, or with form C&E1179 for private individuals and people without an EORI — within 1 year. Basis: GOV.UK: Claim a repayment or remission of charges on rejected imports. Form BOR286 is different: it is used to report Customs Duty or import VAT that was wrongly calculated on items delivered by Royal Mail or Parcelforce only.

From the Polish seller's perspective, these are routes you point a UK customer towards when the charge was paid by them, not by you: a rejected imports claim for goods sent back as faulty or not as ordered, or BOR286 if Royal Mail or Parcelforce calculated the charges incorrectly. HMRC decides each claim on the evidence provided.

UK-side claims do not replace returned goods relief: the relief covers the re-import into Poland, while UK claims cover charges paid in the UK. In a typical e-commerce return the two can run in parallel.

Route 4: consolidated returns via a UK partner — for higher volumes

Goods leaving the UK for the EU need an export declaration. Most UK consumers have no EORI and no customs experience, so sellers with many returns often use a UK logistics partner that collects the returns and arranges the export, for example as the seller's customs representative.

The operating model: returns from UK customers are collected at a UK hub and exported to Poland in consolidated shipments; on the Polish side the batch is re-imported claiming returned goods relief. This replaces many individual parcel clearances with a smaller number of consolidated declarations.

Whether this pays off depends on your return volumes and the partner's fees. Returned goods relief still applies only to the items in the batch that meet its conditions.

Realistic timeline — what to expect

A first return with no procedure prepared is often cleared in Poland as a plain import. Recovering duty or VAT afterwards then means a separate correction or repayment procedure, which takes time and ties up cash.

Once returned goods relief is set up — with proof of export on file and a customs agent briefed — returns that meet the conditions can be cleared without duty and, where VAT relief applies, without import VAT.

A fuller write-up for marketplace sellers is in the spoke Amazon FBA UK — returns to Poland.

Most common mistakes — and how to avoid them

Mistake 1: no IE599 from the original export. Without proof of export the relief can be refused. The fix — archive IE599 from the first sale onwards, ideally linked to the return tracking number. More in the spoke No IE599 — UK export and 0% VAT.

Mistake 2: goods repaired in the UK declared under returned goods relief. Goods repaired or processed abroad do not meet the same-state condition; repairs abroad are normally handled under Outward Processing.

Mistake 3: return sent back to a different group company than the one that exported. Duty relief may still apply, but VAT relief generally will not. If you operate under several tax IDs, set a rule that returns always come back to the exporter entity.

Mistake 4: clearing the return as a normal import and correcting it later. If the conditions for returned goods relief are met, claim the relief on the re-import declaration from the start rather than paying and seeking a correction afterwards.

Mistake 5: not telling UK customers about UK-side claims. If a UK customer paid charges on goods they rejected, they may be able to reclaim them as a rejected import, or via BOR286 where Royal Mail or Parcelforce calculated the charges wrongly.

Checklist for an e-commerce seller — before the first return ships

1. Archive IE599 from every export (SharePoint, Google Drive, document store — anywhere, as long as it is quickly searchable by tracking number).
2. Agree the returns process with your customs agent — returned goods relief as the default for goods coming back to Poland, UK-side claims only for charges paid in the UK.
3. If you have regular return volumes, consider a UK partner that consolidates returns.
4. Enforce a policy: only the entity that shipped the goods can re-import them. No exceptions for other group companies.
5. Link every return to its original export MRN and sales invoice, so proof of export is ready when the goods arrive.
6. Watch changes to the TCA and to the £135 e-commerce UK threshold — they affect how sub-threshold returns are classified.

When it pays to hand the process over to a customs agent

Easy Clearance can prepare re-import declarations claiming returned goods relief and advise on the UK-side steps, both for one-off returns and for regular return flows. Service fees are listed on our pricing page.

If you have your first UK return on the way and are not sure which of the four routes to pick, call or WhatsApp +44 7404 091 503 and send us the export documents.

FAQ — common questions about e-commerce returns from UK

Does an e-commerce return from UK to Poland require customs clearance?

Yes. Goods returning from the UK to the EU are imported into the EU and need an import declaration, whether it is a B2C return, a faulty item or an undelivered parcel. Unless a relief is claimed, duty and VAT are charged as on any other import.

When should I use Returned Goods Relief (RGR), and when C285?

Returned goods relief is claimed when goods come back to the EU within 3 years of export, in the same state. It relieves import duty and, where the reimportation is by the person who exported the goods, import VAT. C285 (or a claim through CDS) is a UK claim for repayment of charges overpaid on the original UK import. They cover different charges, so in some cases both apply.

Does BOR286 work for e-commerce returns?

Only in a narrow case. BOR286 is used to report Customs Duty or import VAT that was wrongly calculated on items delivered by Royal Mail or Parcelforce. Goods rejected by a UK customer are claimed as rejected imports (through CDS or form C&E1179) within 1 year. For the re-import into Poland, returned goods relief is the relevant route.

How long does it take to reclaim duty and VAT after a return from UK?

With returned goods relief claimed at re-import, the relieved duty and VAT are not paid at all. For UK claims, HMRC aims to make a decision within 30 days; claims must be made within 3 years for overpayments and within 1 year for rejected imports.

Do I need the IE599 from the original export?

Yes, if you claim returned goods relief. IE599 confirms that the goods left the EU, and the MRN of the export declaration is quoted on the re-import declaration as proof of export. Without proof of export the relief can be refused and duty and VAT become payable.

What if a UK customer returned a parcel with an incorrect declared value?

If duty and import VAT were charged on an inflated value at the original UK import, the UK importer can claim a repayment: through CDS where the declaration was made with an EORI, or with form C285 for private individuals and people without an EORI. The claim needs supporting documents such as the import invoice and the declaration reference.

Is 23% VAT charged again when goods return to Poland from UK?

It depends on the procedure. Import VAT relief applies to reimportation, in the same state, by the person who exported the goods, where the goods qualify for duty relief (Article 143(1)(e) of the VAT Directive). Without the relief, Polish import VAT (standard rate 23%) and any duty are due; a VAT-registered business can normally deduct the import VAT in its VAT return.

Who can be the declarant of the return — the Polish seller or a UK partner?

On the UK side, the export declaration for goods leaving the UK is made by the exporter or a representative acting for them, often the carrier or logistics partner arranging the return. On the Polish side, the re-import is declared by the importer (normally the Polish seller with an EU EORI) or its customs representative. For larger volumes, many sellers use a customs agent on both sides.

Related articles in the knowledge base

• Return of goods from UK (Returned Goods Relief) — procedure detail
• Customs value refund from UK — C285 step by step
• Amazon FBA UK — returns to Poland, customs procedure
• eBay UK — returning goods from Poland in 2026
• Returning goods to UK (Amazon) — consumer guide 2026
• £135 e-commerce UK threshold — VAT and duty
• No IE599 — UK export and 0% VAT
• Postponed VAT Accounting (PVA) — UK

Official sources

• GOV.UK — Pay less import duty and VAT when re-importing goods (RGR)
• GOV.UK — How to claim a repayment of import duty and VAT if you've overpaid (CDS / C285)
• GOV.UK — Claim a repayment or remission of charges on rejected imports (C&E1179)
• GOV.UK — Report incorrect Customs Duty or VAT on items imported by post (BOR286)
• European Commission — Customs procedures for import and export
• EUR-Lex — Union Customs Code (UCC), art. 203 on returned goods
• EUR-Lex — VAT Directive 2006/112/EC, art. 143(1)(e) on reimported goods