Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what information his Department holds on the VAT rates of deposit return schemes operated in non-UK countries.

The precise operation of the schemes varies from country to country.

HMRC and HMT have contacted a number of other countries regarding their drink deposit return schemes. All of these countries operate their deposit return scheme differently and as such there is a variety of approaches in how they go about accounting for VAT on their schemes. Some countries charge VAT on the deposit at the same rate as the drink itself and others treat the deposit as outside the scope of VAT.