Tax refund: how does it work?

Updated March 2026 - A tax refund is often seen as something automatic, but in reality it depends on several elements: an overpayment, a tax credit or tax reduction, up-to-date bank details, a properly processed tax return, and sometimes a specific procedure for certain business tax credits. In practice, the right question is not only "will I be refunded?" but also why, when and to which account.

A refund may arise in particular when:

• ▸the amounts already withheld are higher than the actual tax due;
• ▸you benefit from refundable tax reductions or credits;
• ▸an excess remains after certain tax credits are offset.

The mechanism is not exactly the same for individuals and for businesses.

For individuals, the refund is generally issued without a separate request if the administration already has your bank details and the final assessment shows an overpayment.

Your tax notice usually indicates:

• ▸whether a refund is due;
• ▸the amount;
• ▸the expected payment date.

See also tax refund 2026: dates, calculation and advice, income tax optimisation and mandatory filings 2026.

For some recurring expenses, an advance payment may be made early in the year and then adjusted later. If you benefit from a tax advantage for the first time, the refund may only arrive when the final calculation is made in the summer.

• ▸your bank details are up to date;
• ▸the return was filed properly and on time;
• ▸the expected amount is genuinely refundable;
• ▸the administration has the correct payment details.

For companies, some tax credits or excess payments may require a dedicated request or follow a specific online procedure and timetable. The applicable form and filing route therefore need to be checked carefully.

Hayot Expertise insight: an expected refund should never be built into cash-flow planning until the legal basis for the refund and the real status of the file have both been verified.

• ▸waiting for a refund to an old bank account;
• ▸confusing an advance, an adjustment and a final refund;
• ▸assuming a tax credit will automatically be paid immediately;
• ▸forgetting to verify the tax notice.

We can verify the legal basis, the procedure and any blocking points.

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A tax refund is not a random bonus. It is the consequence of a tax calculation and, in some cases, a specific filing process. In 2026, the right reflex is to verify the source of the entitlement, the timetable and the payment channel before counting on it.

Waiting for a tax refund or tax credit repayment?
We can review the file with you.

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