5.1. Background

Returning goods is a common element of e-commerce. The goods may be returned without having been delivered, 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 submitting customs declarations on behalf of consumers, invalidation requires a reasonably simple process that does not impose an unbearable workload on customs administrations and does not significantly disrupt the daily operations of companies.

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 as long as they have presented the goods to customs) are only liable to the customs or tax authorities from the payment of import VAT that they have actually collected from the recipient (that is, the importer).

Goods that could not be delivered or that have been rejected by the recipient (i.e. the importer) must be returned under a new contract of carriage (new S10 barcode in the case of postal shipments and new knowledge number aerial 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 urgent shipments) and, in order to extinguish the obligation to pay VAT, the customs declaration of 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 request for a VAT refund will be based on the invalidation of the customs declaration of release for free circulation, in accordance with Article 148, paragraph 3, of AD CAU .