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Import VAT: returned goods relief

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HMRC has updated its guidance Pay less import duty and VAT when re-importing goods to the UK to cover returned goods relief where goods are exported from Northern Ireland, and time limits for claiming relief where the goods were located in the EU on 31 December 2020. Returned goods relief allows businesses to re-import goods (that were previously exported) into the UK without paying customs duty or VAT.

The guidance says that businesses cannot claim returned goods relief for goods which have been exported from the UK as a result of their removal from Northern Ireland unless the goods were either:

  • originally moved to Northern Ireland from Great Britain and were in free circulation at that time (i.e. not under a customs procedure or in a temporary storage facility); or
  • qualifying Northern Ireland goods when exported from Northern Ireland.

Goods transported from the UK which were in the EU on 31 December 2020 will be eligible for relief even if the normal three-year time limit for re-importation has expired. To claim relief, businesses must re-import the goods back to Great Britain by 30 June 2022 and meet the other conditions for returned goods relief. This extended time limit does not apply to goods re-imported into Northern Ireland.

Issue: 1535
Categories: News