Museums and galleries urged to sign up for VAT refund scheme to support free entry for the public

The Government is pleased to announce that a new round of the VAT Refund Scheme for museums and galleries will open this Autumn.

The VAT refund scheme encourages museums and galleries to provide free entry and open up access to works in collections.

The full criteria for a museum and gallery applying are:

• being open to the general public for at least 30 hours per week, without exception
• offering free entry without prior appointment
• holding collections in a purpose-built building
• displaying details of free entry and opening hours on the museum website.

The VAT Refund Scheme, which has been running since 2001, was last open to new applicants in 2018/19. It is estimated that museums and galleries which were added to the scheme in 2020 will benefit from more than £70 million in VAT refunds in the six years after joining.

Institutions taking part in the scheme are entitled to a refund on VAT incurred on goods and services which are purchased in order to provide free admission. A total of 159 sites across the UK currently benefit from the scheme.

More information, and a full list of current organisations on the scheme, can be found at: https://www.gov.uk/guidance/vat-refund-scheme-for-museums-and-galleries-notice-998

Any queries regarding the scheme may be directed to vat33a@dcms.gov.uk

Between April 2001 and June 2022, the total amount of VAT refunds issued to museums and galleries, under Section 33A of the VAT Act 1994 is estimated to be between £900 million and £1,000 million. This is based on HMRC VAT returns and assessments of the proportion of non-business activities.