Draft regulations: amendments to the VAT (Refund of Tax to Museums and Galleries) Order 2001
Detail of outcome
A four-week consultation ran between 25 March 2024 to 19 April 2024. This was a technical consultation intended to allow bodies affected by the instrument to check the accuracy of the details to be inserted in the 2001 Order.
Changes required following the consultation included:
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the Science Group Museum entry for National Collections Centre Red Barn having ‘Science Museum’ removed
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the Victoria and Albert Museum entry for Young V&A having ‘Bethnal Green Museum of Childhood’ removed
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Durham University being named as a body with the Museum of Archaeology Durham University and Oriental Museum Durham University listed as relevant museums (as opposed to being individual bodies on the Order), along with an address update for Oriental Museum Durham University
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Glasgow Life named as a body with the Gallery of Modern Art, Kelvin Art Gallery, Riverside Museum, St Mungo Museum of Religious Life and Art and the Burrell Collection listed as relevant museums and galleries (as opposed to being individual bodies on the Order)
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the addition of Provand’s Lordship as a relevant museum under the body of Glasgow Life, following the demonstration of a change of circumstance and update to their application which evidenced their eligibility to be added to the instrument
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St John Ambulance be named as the body for the Museum of the Order of St John
The legislation was laid on 29 May 2024, and will come into force on 8 July 2024 (SI 2024/720). The updated tax information and impact note (TIIN) for the changes to the Value Added Tax (Refund of Tax to Museums and Galleries) is also available on GOV.UK.
Original consultation
Consultation description
This consultation sets out the draft legislation that amends the Value Added Tax (Refund of Tax to Museums and Galleries) Order 2001, by removing the names of bodies that are no longer eligible to be part of the refund scheme, adding the names of bodies that are newly admitted to the scheme and amendments to the details of existing members.
In support of the arts and culture sector and to incentivise museums and galleries to offer free entry to their permanent collection, the government added the Refund Scheme for museums and galleries to the VAT Act 1994, under section 33A, which allows for eligible institutions to recover VAT.
The amendment to the legislation is an administrative process required to ensure the information on the order is up-to-date, relevant and prevents undue delay in eligible institutions recovering VAT
The VAT Notice 998: VAT Refund Scheme for museums and galleries sets out in further detail the eligibility criteria for admission on to the scheme and those that are currently on the Order.
We welcome views, from the museums and galleries that are affected by the Order, on whether the proposed details in the draft legislation are correct.
While considering your response, you may also like to read the draft Tax Information and Impact Note below.
Any responses to or queries about this consultation should be sent by email to s33avat.museumsandgalleriesconsultation@hmrc.gov.uk.
Documents
Last updated 31 May 2024 + show all updates
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Added consultation final outcome.
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First published.