Value Added Tax Act 1994 section 55B

Deposit schemes: designation

Section 55B defines what counts as a "designated deposit scheme" for VAT purposes and establishes which environmental deposit return schemes fall within scope of the special VAT rules in sections 55C and 55D.

• A "designated deposit scheme" is a deposit scheme that HMRC has specifically designated through regulations for the purposes of the special VAT treatment in sections 55C and 55D.
• A "deposit scheme" covers schemes established under Schedule 8 to the Environment Act 2021, or under any other legislation across the UK that similarly requires a returnable deposit to be paid on goods.
• The definition extends to schemes created under legislation from all UK jurisdictions, including Acts of the Scottish Parliament, Measures or Acts of Senedd Cymru, and Northern Ireland legislation.
• Regulations made by HMRC solely to designate deposit schemes are exempt from the normal statutory instrument procedures set out in section 97(5) of the Act.