Fraudster Ross Elliott was jailed for three years in January 2013 after admitting he submitted hundreds of false invoices to reclaim VAT for work he had never done over a two-and-a-half year period.
The 35-year-old from Werrington was found out after several well known house builders revealed they had never even heard of him.
Now the Stoke-on-Trent Crown Court has ordered the electrician to repay over £110,000 within six months or serve an additional two years in prison.
The court determined Elliott had benefited by £413,338 from the fraud and the remainder can be recovered in future if he is found to have other assets.
Adrian Farley, assistant director of criminal investigation for HMRC, said: “Elliott stole this substantial sum of money purely to line his own pockets.
“His abuse of the VAT repayment system was carried out over a sustained period of time and involved a high degree of planning.
“Today’s hearing will serve as a stern reminder that action does not stop with a prison sentence.
“We will pursue every avenue to ensure money stolen is reclaimed for the taxpayer and public finances.”
Evidence gathered during the HMRC investigation showed Elliott had little or no lawful trade since 2007.