Government agrees to extend VAT refund scheme for museums and galleries

Last month, the Government announced plans to extend the VAT refund scheme. The VAT refund Scheme permits named museums, galleries and institutions, which allow free public access to their collections, to reclaim VAT on costs associated with those collections. Some £60million of support is provided through the VAT refund scheme each year to around 60 major UK institutions which are responsible for approximately 120 qualifying museums and galleries.

Under the extension to the VAT refund scheme, the V&A Museum of Design (Dundee) and Embrace Arts (the University of Leicester’s art centre) will be eligible to join the VAT refund scheme. In addition, other changes are being made to the scheme to enable institutions listed to open new premises and to take account of the closure of some institutions and the renaming of others.