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Update: Changes to Repayment Interest on VAT Credits and Overpayments

  • HMRC has updated its guidance on repayment interest on VAT credits or overpayments
  • Repayment is made within 30 days of receiving the VAT Return
  • HMRC does not count days taken to check the return as part of the 30-day period
  • If HMRC is late in paying, a business may be entitled to repayment interest
  • Repayment interest replaces the repayment supplement for accounting periods starting on or after 1 January 2023
  • A business or its agent can track a VAT repayment online
  • Eligibility criteria for repayment interest on overpayments has been amended
  • Start dates when VAT is not paid to HMRC have been updated
  • Repayment interest end dates when HMRC sets it off against debts have been updated.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news