Measure
The government has previously announced proposals for the Deposit Management Organisation to account for VAT on unreturned deposits when the schemes are introduced from October 2027. This will relieve the administrative burden on manufacturers or importers of bottles. As part of this Budget, the government has released draft legislation to give effect to these changes.
Businesses that produce or sell drinks.
1 October 2027.
This simplification was previously announced as part of Budget 2025. The release of draft legislation should provide further certainty over how VAT should work in respect of deposit return schemes.