To ask Her Majesty's Government what assessment they have made of the impact that VAT laws would have on the rollout of a Deposit Return Scheme.
Answered by
Baroness Penn Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 16th March 2022
It is a fundamental principle of VAT that all amounts paid for the purchase of goods are subject to VAT, including amounts under drinks deposit return schemes (DRS). The Government is committed to making DRS work effectively and is exploring how the VAT regulations may be amended to support the schemes. HMRC will issue guidance on the application of VAT to deposit refunds in advance of the introduction of any scheme.