HMRC introduce VAT repayments by bank transfer for NETPs
What is changing?
Businesses that are registered for UK VAT but do not have a business address in the UK (known as NETPs) and are due a VAT repayment, automatically receive a payable order from HMRC in respect of the refund. However, the impact of Brexit and COVID-19 has resulted in an increase in banks and countries no longer accepting payable orders.
To address this issue HMRC are now making available the option for NETPs to request repayments by bank transfer.
What does the NETP need to do?
To set up this facility an NETP will need to provide HMRC with their bank account information by completing a form accessed via their government gateway account.
Once set up the NETP will receive future repayments directly into their bank account without the need to visit their bank to cash the payable order. An NETP can also cancel a payable order that has already been received and arrange to receive a bank transfer instead.
Information requested on the form includes:
- VAT registration number
- email address
- bank account information
- payable order information (if cancelling one already issued).
It is recommended that NETPs take advantage of this facility which will increase the efficiency and speed of refunds.
For further information see here.