VAT Repayment Checks: Guidance for Businesses

A VAT repayment can be checked by HMRC before it is released. HMRC may ask for invoices, bank statements, VAT account records, export evidence, contracts, transport documents, customer and supplier records, and explanations of the transactions behind the claim.

This page helps businesses understand how to prepare for a VAT repayment check by reference to HMRC/GOV.UK guidance and good record-keeping practice. The aim is to present the evidence clearly, reduce avoidable delay and help HMRC understand the business position.

Key Points

• VAT account and VAT return workings.
• Purchase invoices and sales invoices.
• Bank statements and payment evidence.
• Customer and supplier orders, contracts and correspondence.
• Delivery, transport, weighbridge and stock records where relevant.
• Export evidence where zero rating is claimed.

Why HMRC may check a VAT repayment
Input tax evidence
Export evidence and zero rating
Bank payment evidence
Supplier and customer records
How to respond constructively

Why HMRC May Check a VAT Repayment

HMRC may carry out checks before processing a VAT repayment claim to confirm that the amount being claimed is accurate and supported by appropriate evidence. Repayment checks are a routine part of VAT administration and may be triggered by the size of a claim, changes in trading activity or specific risk indicators identified by HMRC.

Input Tax Evidence

Businesses should be able to provide evidence supporting any input tax being reclaimed. This may include VAT invoices, receipts, contracts and accounting records that demonstrate the business purpose of the expenditure and support entitlement to recover the VAT claimed.

Export Evidence and Zero Rating

Where a repayment claim relates to zero-rated exports or international trade, HMRC may request evidence supporting the VAT treatment applied. This can include shipping documents, customs declarations, proof of export and other records demonstrating that the conditions for zero rating have been satisfied.

Bank Payment Evidence

HMRC may seek evidence that transactions have been completed and paid for. Bank statements, payment confirmations and accounting records can help demonstrate that purchases and other transactions are genuine and support the figures included within the VAT repayment claim.

Supplier and Customer Records

Information relating to suppliers and customers may form part of a repayment check, particularly where HMRC wishes to verify transactions or understand trading relationships. Maintaining accurate records of suppliers, customers and supporting documentation can help demonstrate that appropriate checks have been carried out.

How to Respond Constructively

A constructive response involves providing information promptly, ensuring records are organised and addressing HMRC’s questions clearly and accurately. Good communication and well-maintained evidence can help HMRC complete its review more efficiently and may reduce delays in processing the repayment claim.