To ask the Chancellor of the Exchequer whether his Department has issued rebates of value added tax to supermarkets in relation to loss-leading marketing promotions of alcohol products in the last five years. (312717)

[holding answer 25 January 2010]: HM Revenue and Customs (HMRC) is responsible for the collection and management of value added tax.

Supermarkets are subject to the same VAT rules as other businesses. They are required to account for VAT on payments received for their positive-rated sales, including alcohol products, and are able to recover VAT paid on purchases for their business, including products for re-sale.

The VAT returns rendered to HMRC by supermarkets and other businesses do not distinguish payments or recovery of VAT on alcohol products from those on other sales.