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 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:
- 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 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.