VATSC03185 - Single-use carrier bags: compulsory charge in Scotland
»Ê¹ÚÌåÓýapp Scottish Parliament introduced a compulsory charge on single-use carrier bags set at a minimum of 5 pence. This charge will apply on single-use carrier bags supplied with goods, supplied in or delivered from Scotland. »Ê¹ÚÌåÓýapp legislation took effect from 20 October 2014.
Where suppliers are liable to charge VAT, the amount they charge for a bag is tax inclusive at the standard rate of VAT. For a VAT registered business charging 5 pence, the taxable amount will be 4.17 pence and the VAT 0.83 pence.
Suppliers using a retail scheme should ensure that VAT is properly accounted for through their scheme.
Non-VAT registered suppliers must still charge the same minimum amount of 5 pence.