VATRS10250 | How is repayment supplement paid?

From HM Revenue & Customs · VAT Repayment Supplement Manual

The law – 79(1)(a) and (5)(a) VATA 1994

Repayment supplement can be paid in different ways

Where a repayment return has been made, the repayment supplement is added to the amount of VAT credit claimed on the return.
Where a claim has been made under sections 33, 33A, 33B or 33C VATA, the repayment supplement is treated as an amount due by way of refund under those provisions and is not therefore considered a VAT credit.

The above methods result in a repayment or refund. However, we may set repayment supplement off against a taxpayer’s outstanding debt to VAT, penalty, interest, surcharge or direct tax debt.