How Long Does It Take For HMRC To Pay My VAT Refund?

How long does it take for HMRC to make my vat refund

How Long Does It Take For HMRC To Pay My VAT Refund

When am I entitled to a VAT refund?

When you are registered for VAT, you charge VAT on your sales and reclaim the VAT you have suffered on your purchases.

The difference between the two is what you pay over to HMRC. But that only happens when the VAT you charge on sales is more than that VAT you have paid on purchases.

If you are in a position where you have paid out more VAT on purchases than you have received on your sales, then you are entitled to a VAT refund. 

You submit your VAT return in the standard way, and instead of paying over VAT to HMRC, you receive the refund amount back.


How and when you’ll receive your refund

You need to give your account details to HM Revenue and Customs (HMRC) - even if you’ve already set up a Direct Debit for VAT Returns. Add or change them by going to the registration details in your VAT online account. If HMRC does not have your business bank details, then you will be sent a refund cheque in the post to the address that HMRC have registered for VAT (note this might be different to your registered office address - you can check this address in your online VAT account as well). 

You will usually get your refund within ten days of HMRC receiving your return, but it may take longer. 

You should contact HMRC if you have not heard anything after 30 days.


You might also want to read:

When is my VAT return due?
What happens when my vat return is late

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About the Author

Annette Ferguson 

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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