Policy paper
VAT provisions for Deposit Return Schemes (DRS)
This measure introduces new VAT accounting rules for supplies made under a statutory Deposit Return Scheme (DRS).
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Details
Under a Deposit Return Scheme (DRS) a refundable deposit is added to eligible drinks containers, which consumers get back when they return the empty container.
This measure changes the VAT accounting rules that apply to those deposits.
Producers and importers will no longer be required to account for VAT on DRS deposits.
Instead, the scheme administrator will account for VAT on deposits. VAT will only be due on deposits that are not returned to the consumer.
Updates to this page
Published 13 July 2026