The Scottish Deposit Return Scheme, which was initially scheduled to launch on 16 August of this year, has been postponed until 1 March 2024. This delay has raised concerns among retailers who were preparing for the implementation of the scheme. However, the Association of Convenience Stores (ACS) has developed comprehensive guidance and a set of frequently asked questions to assist retailers in understanding the details of the scheme in Scotland and the rest of the UK. ACS will continue to provide guidance to retailers as more information is clarified by the Scottish Government and scheme administrator Circularity Scotland.
In response to the scheme’s delay, the UK government has announced how Value Added Tax (VAT) will be applied to the scheme in the UK. Under existing VAT rules, VAT is chargeable on the price payable for goods and services, including any deposit added to the price. The draft regulations for the scheme aim to ease the administrative burden for businesses by placing the responsibility for accounting for VAT on unreturned containers on the manufacturer or importer.
ACS chief executive James Lowman commented on the draft regulations, stating, “We are supportive of the proposals laid out in the draft regulations as this will protect retailers from the additional administrative burdens associated with the application of VAT to all deposits.”
To access the draft regulations for the VAT provisions, you may go to the government website here. As retailers await further updates on the Scottish Deposit Return Scheme, the ACS remains dedicated to providing the necessary support and guidance to ensure that businesses are prepared for the scheme’s eventual implementation.
