Scottish deposit return scheme – VAT consequences

The deposit return scheme (DRS) will apply in Scotland from 16 August 2023. Under the DRS, a 20p deposit will be paid on the sale of a drink in certain single-use containers. When an end-consumer returns a container to a return point, the deposit will be repaid to them. The Scottish Government has published a letter in response to a factsheet issued by HM Treasury, setting out how VAT will apply to the DRS.

Source: Deloitte

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