The Treasury has confirmed that the 5ppl relief on fuel purchases as part of the rural fuel duty rebate scheme that kicks off on March 1 does not include VAT.
In answer to questions posed by RMI Petrol on behalf of the retailers eligible for the scheme in Scotland’s Inner and Outer Hebrides, Northern Isles, the islands in the Clyde and the Isles of Scilly, an environment and transport taxes advisor at the Treasury said: “The scheme is a 5ppl reduction in fuel duty and doesn’t include VAT, which is treated separately.”
Retailers also raised questions about liability to repay any relief obtained in the two months preceding the scheme should it be terminated for any reason.
The Treasury advisor responded: “There is a legal requirement for the relief to be passed on 60 days after registration and if a claimant fails to do so he will be liable to repay the relief claimed.
“There is no requirement for relief claimed during the first 60 days of registration to be repaid if the scheme is cancelled.”