Deposit Recycling Scheme – VAT issue for scheme to encourage recycling


There has been recent commentary from the Scottish media in terms of the VAT implications of the plans to introduce a Deposit Recycling Scheme in Scotland to encourage people to bring back drinks bottles and the like to retailers. We note that these plans – in Scotland – have been further delayed in terms of introduction to August 2023, but it’s another example of picking up the interplay of VAT into any arrangements where money changes hands for goods or services. This link between supply and a consideration is the same point that created a VAT charge on the carrier bag levy when it was introduced. The issue of having to account for VAT on the deposit payment is noted in the report produced by the Association of Public Service Excellence (APSE), a non-for-profit organisation that works with local government across the UK.

As ever, it’ll be interesting to see how this develops both in terms of the recommendation to lobby the UK Government for action on the VAT implications of this as it is seen as a negative factor and the plans of other devolved administrations devising their own actions around the encouragement for recycling.


VAT Scheme to support Listed Places of Worship Extended

This scheme has existed for many years and has made press coverage in the past due to the irrecoverable burden of VAT costs on major repair works at prominent Cathedrals and places of worship across the UK. It was good to see that access to the scheme has been further extended to March 2025.

Details of the scheme can be found here

As ever, if any help is needed on the VAT front in looking at the scheme or indeed any major property-related projects across the not-for-profit sector please do contact your friendly Centurion VAT team.


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