To fill out Form VAT 126, sign in to HMRC’s online service with the Government Gateway account linked to your organisation’s business tax account, enter your organisation’s details and unique reference number, choose a claim period that ends on the last day of a calendar month, and then enter each invoice (or upload a spreadsheet if you have six or more) with the supplier’s VAT number, invoice date, description, net amount, and VAT charged. The form totals the VAT for you, and you submit it online or, if you prefer, print and post the downloaded version.
Who the Form Is For
VAT 126 is the route for organisations that are not VAT-registered to reclaim VAT paid on purchases used for non-business activities. Eligible bodies include local authorities and similar public bodies under section 33 of the Value Added Tax Act 1994, designated national museums and galleries, academy schools and multi-academy trusts, and qualifying charities providing palliative care, air ambulance, medical courier, or search and rescue services.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT If your organisation is VAT-registered and could reclaim through a standard VAT return, HMRC will not process a VAT 126 claim for that expenditure.2Legislation.gov.uk. Value Added Tax Act 1994 – Refunds of VAT in Certain Cases
The VAT you reclaim must relate to non-business activities. Purchases made to generate a profit, for commercial supply, or for personal use do not qualify, and anything bought for resale falls outside the scope of VAT 126 entirely.2Legislation.gov.uk. Value Added Tax Act 1994 – Refunds of VAT in Certain Cases Where a purchase serves both business and non-business purposes, you can only reclaim the non-business portion. HMRC does not prescribe a formula for the split; the method just has to produce a fair and reasonable result, and you should keep records showing how you arrived at it.3GOV.UK. Partial Exemption (VAT Notice 706)
What to Gather Before You Start
Have all your invoices in front of you before opening the form. For each invoice you will need to record:
- The supplier’s nine-digit VAT registration number
- The invoice date
- A short description of the goods or services
- The net amount (before VAT)
- The VAT charged, usually at the standard 20% rate or the reduced 5% rate
- The name of the organisation that received the supply, which matters most for multi-academy trusts where different schools receive different goods and services
You also need your organisation’s unique reference number. It starts with X, followed by two capital letters and 12 digits (for example, XTV126000123456). If your organisation has claimed before, the number appears on the bank statement next to the previous BACS payment. First-time claimants need to contact HMRC to get one issued.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT
To use the online service, sign in with the Government Gateway user ID and password tied to your organisation’s business tax account. A personal tax account will not work. If your organisation does not have a Government Gateway account yet, you can create one during sign-in.4GOV.UK. HMRC Online Services: Sign In or Set Up an Account
Keep every original invoice, paper or digital, on file. HMRC can ask to see them during a verification check.
Setting the Claim Period
The claim period has two rules that catch people out. It must cover at least one full calendar month, and it must end on the last day of a calendar month. If the total VAT you are reclaiming is under £100, the period has to span at least 12 months.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT
There is also a four-year backstop. You must submit within four years after the end of the month in which the supply, acquisition, or importation took place. After that, HMRC will not process the claim.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT Smaller organisations often batch invoices and claim once a year; larger local authorities with heavy monthly spending tend to claim monthly or quarterly.
Entering Your Organisation’s Details
Start the form by entering your organisation’s registered name, postcode, and unique reference number, then select the claim period. Check the end date lands on the last day of a calendar month before moving on. A multi-academy trust files as a single organisation through the trust’s own Government Gateway account rather than having each school claim separately; the school or entity that received each supply is recorded per invoice.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT
Entering the Invoices
How you enter invoices depends on how many you have.
For fewer than six invoices, type each one directly into the online fields: supplier’s VAT registration number, invoice date, description, net value, and VAT charged. The form adds up the VAT amounts to give your total refund.
For six or more invoices, the online service asks you to upload a single spreadsheet or document containing the same details for every invoice, rather than typing them in one by one.1HM Revenue & Customs. Claim a VAT Refund as an Organisation Not Registered for VAT
Whichever route you use, check the totals against your invoices before submitting. Most problems start here. A transposed digit in a VAT registration number, or the gross amount typed where the net should go, will trigger a query and hold up the payment. Include only VAT relating to non-business activity, and exclude anything bought for resale, private use, or a commercial purpose.
Submitting Online or by Post
The faster route is HMRC’s online service. Sign in with your organisation’s Government Gateway credentials, complete the form, and submit. A confirmation screen appears once the claim goes through. Save or print it for your records.
If online submission is not practical, download the VAT 126 form from GOV.UK, fill it in, print it, and post it to the HMRC address printed on the form. Postal claims take longer to process.
What Happens After You Submit
HMRC generally processes VAT repayments within 30 days of receiving the claim, and approved refunds are paid by BACS directly into the organisation’s bank account.5GOV.UK. VAT Repayments: Overview
Your claim may be selected for verification, in which case HMRC will ask to see the original invoices. Verification is routine and does not imply suspicion; respond promptly to keep things moving. If something in the claim does not add up, such as a missing VAT number, a claim period that does not end on the last day of a month, or invoices whose totals do not match, HMRC will write and explain. Correcting the issue and resubmitting is usually straightforward.