VAT on goods returned to the UK for servicing?

We have returned equipment to a UK manufacturer for servicing. The equipment will be temporarily in the UK and shipped back to Australia once work has been completed. We have currently been charged VAT on the full replacement value of the equipment on arrival in the UK. I assume that there is an exemption for such a situation, but I was wondering what we might be able to do to rectify the situation, or what we should have done (or should do in the future) to avoid it. Any advice appreciated.

Hi Normal import procedures and charges apply if special procedures are not used. These usually need to be approved prior to import but occasional imports can usually be applied for at the time of import. It is a requirement that the applicant is established in the UK so it would need to be the UK manufacturer who would need to apply. https://www.gov.uk/government/collections/pay-less-or-no-duty-on-goods-you-store-repair-process-or-temporarily-use You may also need to look at the below in respect to your recent import. https://www.gov.uk/guidance/refunds-of-uk-vat-for-non-uk-businesses-or-eu-vat-for-uk-businesses

Hi,

Please contact our international trade team for advice as there will be options for Temporary Admission and inward processing relief.

Imports and exports: general enquiries

Thank you.