GERS uses 8.1% as the proportion of UK total VAT revenues that can be attributed to Scotland, thus estimating a credit to the Scottish account of £5.949bn. The SNP suggests 8.5% (£6.50bn).
However, The Great Deception uses 10.3% (£7.497bn) giving as a reason that “this 10.3% distortion is due to the fact that VAT is charged on Bottled Whisky and Hydrocarbon Fuels as soon as they leave the Distillery bonded stores or the Refinery gates”.
But that’s not true for export goods. It's not an issue within the UK of course, but in an independent Scotland, Scotch whisky and Grangemouth-refined fuel exported to be sold in England would pay VAT only to the English exchequer. I would therefore contend that The Great Deception has overestimated Scottish VAT revenues by up to £1.548 billion.
