Written answers
Thursday, 5 October 2023
Department of Finance
Tax Code
James Lawless (Kildare North, Fianna Fail)
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123. To ask the Minister for Finance if he has any plans with regard to the application of VAT to returns under the deposit return scheme; and if he will make a statement on the matter. [43168/23]
Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware the planned ‘go-live’ date for the operation of the Deposit Return Scheme (DRS) is February 2024.
The appropriate VAT treatment for the scheme has been considered and discussed with the European Commission. I intend to amend the VAT Consolidation Act 2010 in Finance Bill (no.2) 2023 to set out the operating principles of the scheme with further details set out in Regulation.
The intention is that the operator of the scheme account for VAT on unredeemed deposits. This means that no business in the supply chain, such as wholesalers and retailers, will have to account for VAT on deposits at any point.
This approach is in line with the VAT Directive and with the principles of the proposed Deposit and Return Scheme.
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