5.1. Background

Returning goods is a common element of e-commerce. Goods may be returned undelivered, either because the recipient cannot be located or because the recipient simply refuses delivery of the goods. Apart from cases where VAT is settled under the IOSS at the time of purchase, the number of such refusals by part of recipients could increase after the entry into force of the new VAT rules in e-commerce, when consumers have to face the obligation of additional payment (VAT and possible service fees) at the time of delivery of the estate.

In order to mitigate the impact on customs administrations and economic operators filing customs declarations on behalf of consumers, invalidation requires a reasonably simple process that does not impose an unsustainable workload on customs administrations and does not significantly disrupt the daily operations of businesses.

The invalidation of the customs declaration of release for free circulation will be relevant, in particular, in the context of the special regime and the ordinary VAT collection mechanism. Under the special regime, postal service operators, express transport companies and customs agents (i.e. persons who benefit from this regime provided they have presented the goods to customs) are only liable to the customs or tax authorities for the payment of import VAT which they have actually collected from the recipient (i.e. the importer).

Goods that could not be delivered or that were rejected by the consignee (i.e. the importer) must be returned under a new transport contract (new S10 barcode for postal shipments and new air waybill number). house en el caso de los envíos urgentes), incluyendo una referencia cruzada al documento de transporte usado para la importación (código de barras S10 en el caso de los envíos postales y número de conocimiento aéreo house in the case of express shipments) and, in order to extinguish the obligation to pay VAT, the customs declaration for release for free circulation must be invalidated.

If the recipient (i.e. the importer) has accepted delivery of the initial consignment and decides to return it later, the process will depend on how the consumer decides to organize the return and the procedure applicable in the relevant Member State as regards the VAT refund request. The application for VAT refund shall be based on the invalidation of the customs declaration for release for free circulation, pursuant to Article 148(3) of AD CAU .