VAT repayments

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 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 ‘payable order’).

You can:

• change the details that HMRC uses to make your repayment
• request repayments go to an overseas bank account

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 track a VAT repayment online.

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