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VAT repayments

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1. Overview

If you’ve charged your customers less VAT than you’ve paid on your purchases, HM Revenue and Customs (HMRC) will usually repay you the difference.

This guide is also available in Welsh (Cymraeg).

When you complete the boxes on your VAT Return, the information you enter will show you the:

  • total amount of VAT charged - Box 3
  • total amount of VAT paid - Box 4

You’re due a repayment if the figure in Box 3 is less than the figure in Box 4. This means you’ve charged your customers less VAT than you’ve paid out.

How much you’re repaid is the figure shown in Box 5 of your VAT Return.

VAT repayments are different from VAT refunds. If you’ve paid VAT by mistake, read the guidance on correcting errors in your VAT return to claim a refund.

How to get a VAT repayment

HMRC processes most repayments automatically when you submit your VAT Return.

If we need to check your VAT Return is accurate and the amount being repaid is correct, we will contact you for more information.

Your repayment will go direct to your bank account if you gave HMRC bank details for your repayment. Otherwise HMRC will send you a cheque (also known as a ‘payable order’).

You can:

How long it takes

Repayments are usually made within 30 days of HMRC receiving your VAT Return.

If we need to check your VAT Return is accurate, it may take longer than 30 days to get your repayment.

If HMRC is late in making your repayment, you may be entitled to repayment interest on any VAT that you are owed.

Check the status of a VAT repayment

You can check the progress of a VAT repayment online in your business tax account. You’ll need the sign in details you created when you registered for VAT.

If your account has not been updated or you’ve not been contacted about the status of your repayment within 30 days, you can contact HMRC.

2. Repayments to an overseas bank account

You can only get VAT repayments paid into an overseas bank account if your company:

  • does not have a UK bank account (and you’re unable to get one)
  • does not have a UK address

For HMRC to make a payment into your overseas bank account, it must be:

  • in the name of the company owed a repayment
  • associated with a named business owner or an authorised person who has sign in details for HMRC services
  • able to accept repayments in pounds sterling

You must fill in a form to give details of your overseas bank account before HMRC can transfer any VAT repayments. All VAT repayments will then be sent to this bank account.

You can also use the form to change uncashed cheques into electronic payments to your bank account or update your bank details.

You need to sign in to submit your information. If you do not already have sign in details, you’ll be able to create them when you sign in for the first time.

3. If you need a new cheque or you want to be paid in a different way

You can write to HMRC Payments to ask them to:

  • send a replacement cheque if yours is lost or out of date
  • send the repayment to the bank account stored on your business tax account
  • send the repayment somewhere else because you are no longer VAT registered
  • use the repayment to pay another tax

You must include your:

  • name
  • VAT reference number
  • address
  • contact number

You must also return any out of date or unused cheques.

HMRC Payments
HM Revenue and Customs
BX9 1XD