Policy paper

VAT Accounting for Deposit Schemes

This tax information and impact note outlines legislation introduces rules for VAT accounting for deposit return schemes.

From:
HM Revenue & Customs
Published
15 March 2023

Documents

VAT Provisions for Drink Deposit Return Schemes

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Details

When making sales that are within the scope of a relevant deposit scheme, no VAT will be charged in relation to the deposit amount.

VAT will be accounted for on unreturned deposit amounts by the first seller of a deposit scheme product. The rules for accounting for this VAT will be set out in the subsequent secondary legislation and a VAT Notice.

Published 15 March 2023

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