VAT repayments

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1. Overview

If you鈥檝e charged your customers less VAT than you鈥檝e 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鈥檙e due a repayment if the figure in Box 3 is less than the figure in Box 4. This means you鈥檝e charged your customers less VAT than you鈥檝e paid out.

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

VAT repayments are different from VAT refunds. If you鈥檝e 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 your repayment automatically when you submit your VAT Return.

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 鈥榩ayable order鈥�).

You can:

How long it takes

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

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

Track a VAT repayment

You can .

Contact HMRC if you鈥檝e not heard anything within 30 days of submitting your VAT Return.

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鈥檙e 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 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鈥檒l 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