UK VAT repayments without a UK bank account
Yes, if your company has no UK address and no UK bank account, and cannot obtain one. The overseas account must belong to the company owed the repayment, meet HMRC’s access conditions and accept pounds sterling. Submit HMRC’s overseas-bank form before transfers can begin. This guide is from Cambridge China Bridge.
Check eligibility before arranging payment
HMRC allows this overseas-bank route only where your company has no UK bank account and cannot obtain one, and has no UK address. Being an overseas seller alone does not satisfy these conditions. Check the company’s circumstances before choosing the repayment destination.
This guide concerns where a VAT repayment is paid. For the surrounding selling arrangements, consult our guides on UK-established or overseas marketplace sellers and VAT on overseas sellers’ UK stock.
Use an account belonging to the repayment company
The overseas account must be in the name of the company owed the repayment. It must also be associated with a named business owner or an authorised person who has sign-in details for HMRC services, and be able to accept repayments in pounds sterling.
Compare the bank’s recorded account holder with the company claiming repayment. Do not nominate a factory’s, sourcing agent’s or director’s personal account instead of the company account. Ask the bank to confirm that the proposed account can receive sterling and explain any conversion or receiving charges.
Submit the overseas-bank application
Open HMRC’s VAT repayment guidance and follow its form for providing overseas bank details. You must complete that form before HMRC can transfer repayments. You need to sign in to submit the information; if you lack sign-in details, you can create them when signing in.
Have the company and bank records available while completing the form. Copy account information from the bank’s own records, check it before submission and save the confirmation provided. HMRC says all VAT repayments will then go to that account.
Keep repayment details current
Use the same overseas-bank form to update your bank details. It also lets you change uncashed cheques into electronic payments to your bank account.
Give someone responsibility for reviewing repayment details whenever the company changes bank. Submit the update while the existing account is still available where possible, retain the submission record and check actual receipt. Ask HMRC about any pending repayment rather than assuming an account change has redirected it.
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Keep the bank application separate from VAT evidence
HMRC processes most repayments automatically when you submit your VAT return. It may contact you for information to check the return and repayment amount. Keep the bank application record alongside the return records so your accountant can distinguish a repayment query from a bank-detail query.
For China purchases, use our guide to giving your accountant import VAT evidence when assembling the supporting purchase and import records. Keep supplier payment instructions separate from the company’s HMRC repayment instructions.
Frequently asked questions
Can an overseas seller get UK VAT repayments abroad?
Yes, under this route if the company has no UK address, has no UK bank account and cannot obtain one. The overseas account must also meet HMRC’s ownership, access and sterling requirements.
Can HMRC repay VAT into my director’s personal account?
The overseas account must be in the name of the company owed the repayment. A director’s personal account does not meet that company-name condition.
How do I apply for VAT repayments to an overseas bank?
Follow the overseas-bank form in HMRC’s VAT repayment guidance, sign in and submit the bank details. HMRC requires the form before it can transfer repayments.
How do I change overseas VAT repayment bank details?
Use the same overseas-bank form to update the details. You can also use it to change uncashed cheques into electronic payments to your bank account.