No. As this is a deposit, which is fully refundable, it does not impact cash or percentage gross margins.
No. Any capital costs up front are the responsibility of the retailer, though a variety of commercial models are available from RVM manufacturers to spread the cost.
The scheme is designed to be cost neutral for retailers. You will therefore receive a “handling fee” from the scheme administrator to reimburse you for the costs of playing your part in the Deposit Return Scheme.
A reasonable handling fee is defined in the legislation as:
The handling fee will be advised in due course by the scheme administrator, as will the frequency of payment.
As part of your registration as an outlet, you will also create an account to handle such transactions.
Your cash flow may be impacted. This will depend on the nature of your business, the relative balance of scheme containers sold versus collected, and the way consumers interact with your scheme.
The payment terms will be advised in due course by the scheme administrator.
There may be some pragmatic ways to manage this via the Scheme Administrator once in place.
This is all in the detail to be worked out by the Scheme Administrator, taking all views into account (including of course ours as a producer with a seat at the table).
The Scottish Government is clear that the deposit should not be subject to VAT. Discussions are ongoing with the UK Government to reach a final position on this matter. We do not expect VAT to apply, but this is still to be confirmed.
Because a Deposit Return Scheme is a form of Extended Producer Responsibility (EPR), a policy philosophy that producers should have the full obligation – physical and/or financial, for the treatment and disposal of postconsumer products.
Producers will pay for the scheme through a “producer fee”. This will be applied to each container put out to the market.
The level of the fees will be determined by the Scheme Administrator. It may vary based on the container type (for example by material type). They will be set at a rate which ensures the scheme is well funded, and able to operate effectively at all times. The fee may vary over time based on scheme requirements.
This is to be determined. Final scheme container coding and identification requirements are decided by the SA who will run the scheme.
The cost and complexity challenges of SKU duplication are well understood, as well as the fraud risks of not having any SKU duplication.
The Scheme administrator will need to arrive at a balanced decision, taking all supply chain considerations into account, from producers and retailers alike.