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HMRC internal manual

VAT Registration

Variation of trader’s details: repayment indicator

Setting the repayment indicator results in less stringent enforcement procedures and credibility checks than would be the case if the trader is classified as payment.

Therefore, repayment indicators should only be allocated when all the following apply:

  • the trader is in an overall repayment position
  • all returns for the past 12 months (or from the EDR, if that is less than 12 months) have been submitted
  • at least half were repayment claims
  • there is no reason to suspect that this is not the regular trading pattern.