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Written question asked by Baroness Jones of Whitchurch (Labour) on Thursday, 3 March 2022, in the House of Lords. It was due for an answer on Thursday, 17 March 2022. It was answered by Baroness Penn (Conservative) on Wednesday, 16 March 2022 on behalf of the Treasury.


Deposit Return Schemes: VAT

Question

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.

Answer

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.


Secondary information

Type
Written question
Reference
HL6616
Session
2021-22
Grouped for answer
Yes
Subjects
VAT Deposit return schemes
Link
View this Written question on www.parliament.uk