Guide to Claiming VAT and Import Duty Repayments: Eligibility, Process, and Requirements

4 Sept

HMRC has recently updated its guidance on how businesses and their representatives can claim repayments of overpaid import duty and import VAT. This is relevant to importers, agents, freight forwarders, and express operators who may encounter errors or overpayments in customs declarations.

Who Can Claim?

Repayment applications can be made by:

Importers themselves.
Customs agents, freight forwarders, and express operators acting on behalf of their clients.

Eligibility depends on demonstrating that duty or VAT was overpaid at the time of the original customs declaration.

Time Limits

Claims must generally be made within three years from the date of the original customs debt, in line with Article 121 of the Union Customs Code (Regulation (EU) 952/2013).
For VAT, the right to repayment is reflected in Section 80 VATA 1994 (overpaid VAT) and related provisions.

How to Apply

There are two main ways to apply for repayment:

1. Customs Declaration Service (CDS)

Online applications can be made directly through the Customs Declaration Service.
Applicants must provide supporting evidence of overpayment (e.g. amended invoices, corrected tariff codes, or proof of preferential origin under trade agreements).
HMRC’s guidance: Claim a repayment of import duty and VAT if you’ve overpaid (gov.uk).

2. Form C285

Where CDS cannot be used, applicants may submit a form C285 (either digitally or by post).
This form requires details of the import entry, calculation of overpayment, and relevant documentary evidence.
Guidance: C285 form (gov.uk).

What Happens After You Apply?

HMRC will assess whether the repayment conditions are satisfied.
If approved, repayments are normally made to the importer’s Deferment Account or directly to their bank account.
In some cases, HMRC may request additional evidence before releasing funds.

Key Considerations for Businesses

Ensure claims are made within statutory time limits.
Retain full supporting evidence to avoid rejection or delays.
Where agents or freight forwarders are acting, ensure authority and documentation are in place.

✅ Practical Tip: If you are making regular imports, it may be worth conducting periodic audits of your customs declarations to identify any overpayments of duty or VAT.

Phillip Henwood