I have imported my bank transactions. One transaction is a VAT refund. I have clicked on it to match and the category is VAT suspense is this correct.

VAT Suspense account would appear to be where all VAT payments and refunds end up, but I really would not recommend you initiate a VAT payment or refund posting from the bank transaction import screen.

Go to Taxes tab and look for the a previously filed VAT return to post the refund, then go back to the bank feed to Match the entry.