Reduced duties for goods being returned after repairs
If you are sending an item for repair or upgrade, you may be able to pay lower customs duties and VAT on the item when it is returned to you. In some cases, you may be exempt from these charges altogether.
You should contact the carrier if you want to pay lower customs duties and VAT when sending an item for repair or upgrade.
Upgrading, improving or repairing an item
I am planning to send an item for repairs
If, as a private individual, you own a broken article that you want to send to a country outside of the EU to be repaired, processed or exchanged, you may be eligible to pay reduced customs duty and VAT for the article when it returns to you. In some cases, you may be completely exempt.
This is known as “outward processing”. For outward processing, you need authorisation from Swedish Customs.
Am I required to pay any customs duty or VAT at all?
If the repairs are covered by the goods’ warranty, you are not required to pay anything as the goods return.
If the repairs are not covered by the warranty, you will be charged:
- Customs duty for the cost of the repairs and customs duty for shipping and insurance expenses as the goods are returned to the European Union.
- VAT on the cost of the repair, customs duties and any other taxes and charges.
If your goods are duty-free, i.e., the rate of customs duty is 0%, you only pay VAT on the costs for repairs, shipping and fees.
How to claim a reduced rate of customs duty and VAT
To benefit from a reduced rate of customs duty and VAT when your goods are returned, the carrier needs to request a new outward processing authorisation at the time when the goods are sent.
Procedure:
- Contact a carrier and ask them to declare and apply for outward processing with you as the declarant.
- Make sure you get a customs ID for the parcel.
- Then, when your parcel is sent back to you, inform the carrier of the customs ID of your parcel and that they should make a ‘re-importation after outward processing’ for the goods.
You may also need to show the carrier
- a copy of your export declaration
- your export certificate
- a copy of an invoice or similar from the company repairing the goods, stating that it is a repair and what you have been charged.
I am upgrading or improving my goods
If, as a private individual, you send an article to be upgraded or otherwise improved, you may be eligible for a reduced rate of customs duty or VAT when your article returns. Examples of improvements include refitting jewellery with new stones, renovating musical instruments and upgrading functions in cameras and watches.
Improvements of this nature are known as ‘works’ and are included in the outward processing customs procedure. For outward processing, you need authorisation from Swedish Customs.
What am I required to pay?
You are required to pay the following when sending an article for improvements:
- Customs duty on the cost of the works;
- VAT (calculated based on the cost of the works + customs duty).
If your goods are duty-free, i.e., the rate of customs duty is 0%, you only have to pay VAT on the costs of the works.
How to claim a reduced rate of customs duty and VAT
To benefit from a reduced rate of customs duty and VAT when your goods are returned, the carrier needs to request a new outward processing authorisation at the time when the goods are sent.
Procedure:
- Contact a carrier and ask them to declare and apply for outward processing with you as the declarant.
- Make sure you get a customs ID for the parcel.
- Then, when your parcel is sent back to you, inform the carrier of the customs ID of your parcel and that they should make a ‘re-importation after outward processing’ for the goods.
You may also need to show the carrier
- a copy of your export declaration
- your export certificate
- a copy of an invoice or similar from the company repairing the goods, stating that it is a repair and what you have been charged.