Non-resident VAT registered businesses – VAT repayments can now be made into non UK bank accounts

It has long been an issue that any non-UK business that register for VAT in the UK (a non-established taxable person or NETP) has been unable to have any VAT repayments paid directly into a non-UK bank account. These VAT repayments have, until now, been made by payable order (cheque) only.

Since the UK left the EU, this has become more problematic, with some EU banks refusing to accept a UK cheque and the impact of Covid-19 has also made it extremely difficult to open any UK business bank account.

HMRC have recently created a ‘Gform’ that will enable NETP customers whose principle place of business is outside of the UK, to send them their bank account details, this can be accessed via their Government Gateway account but must be done using the link at the bottom of this page.

Within HMRC, a ‘lock’ will then be set on the customer’s account to prevent any payable orders being issued, HMRC will then make a CHAPS payment instead. The form will require:

• VAT registration number
• Address
• Email address
• Bank account information (this must be in the name of the registered business)

Any business that has already received payable orders that they are unable to deposit into a non-UK bank can also use this form to change uncashed cheques into an electronic payment.

If an NETP is registered for VAT with a UK address, HMRC, currently, will not allow the above process.

For further information on VAT registration, or should you have any further queries relating to VAT please speak to a member of our VAT team today.