How is a vat refund categorised under banking

Hello Addington-holdin, 

Welcome to the Community page, 

You should record the refund on the VAT screen against the return that was refunded then it will match on the bank screen. Taxes>Vat> vat return> record a refund> go to transactions>banking> click on transaction>match 

If you want to know what category to put it against you will need to ask an accountancy about this and they will be able to help you with that.