Deposit Return Schemes: VAT
Commons · Question 88305 · Tabled 5 Nov 2025 · Treasury · Official record
Answered 17 Nov 2025
Question
Asked by Ben Lake
To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 April 2025 to Question 43325 on Deposit Return Schemes: VAT, for what reason her Department is considering applying VAT to unredeemed deposits in the deposit return scheme in the context
Answer
Answered by Dan Tomlinson, 17 Nov 2025
The Deposit Returns Scheme (DRS) will launch in the UK in October 2027, introducing mandatory refundable deposits on drinks containers with the aim of increasing recycling. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies...