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Enabling Faster VAT Payments: Introducing InstantVAT

24th Jun 2024
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Adsum is the UK’s leading fintech VAT refund specialist specifically designed for SMEs and their...
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Have you found this content useful? Use the button above to save it to your profile.

Adsum’s tax payments technology aims to bring speed and efficiency to VAT payments with InstantVAT.

As accountants, managing many VAT returns and ensuring timely payments for clients can be challenging. The question, "How long does a VAT refund take?" is likely common. To streamline the VAT refund process, Adsum has introduced InstantVAT, a technology that can enable VAT refund reciepts in as little as 24 hours from submission.

InstantVAT
Adsum

Understanding VAT Refund Timelines

Typically, once HMRC receives a VAT return, the refund is processed in about 10 days. However, refunds can sometimes be as quick as 4 days (1 day for HMRC verification + 3 days for BACS payment) or as slow as 30 days. If the refund takes longer than 30 days, HMRC may provide compensation for the delay.

Factors Affecting Processing Time

Several factors can influence the VAT refund timeline:

  • Accuracy of submission
  • Method of submission (online vs paper)
  • Method of refund payment (cheque vs direct bank transfer vs InstantVAT)
  • Busy seasons
  • Volume of business transactions
  • HMRC audits and compliance issues

Complex transactions and busy periods at HMRC can cause delays. Staying updated on VAT regulations is crucial as changes can impact documentation and processing times.

Tips for Accelerating VAT Refunds

Consider these best practices to help your clients receive VAT refunds faster:

  • Ensure the VAT number is entered correctly
  • Advise clients to opt for monthly VAT returns for more regular refunds
  • Use digital submission methods (MTD)
  • Stay up to date with VAT regulations
  • Classify transactions correctly (standard-rated, zero-rated, or exempt)
  • Apply the correct VAT rates for different goods and services
  • Use Adsum’s InstantVAT payments infrastructure

Introducing InstantVAT

InstantVAT allows clients to receive VAT refunds faster and more efficiently than ever. The technology connects to a company’s HMRC gateway account and provides real-time updates on VAT return status. Once HMRC verifies the VAT return, it releases the VAT refund to the business bank account immediately. This enables clients to receive their VAT refunds in as little as 24 hours from submission, and always 3 days faster than HMRC’s standard process.

InstantVAT Timeline
Adsum

Leveraging InstantVAT saves your clients valuable HMRC waiting time and allows them to put their cash to work faster and harder however they please without any changes to their business processes. 

To find out more about InstantVAT click here. Or, to create a free InstantVAT account, click here.

Create a free InstantVAT account