Is there VAT on a PPL PRS music licence?
Yes: 20% VAT is added on top of the tariff. What that means for you depends on whether you can reclaim it.
On this page
Yes. TheMusicLicence is a standard-rated supply, so PPL PRS adds VAT at 20% to your licence fee. The tariff figures PPL and PRS publish (and the ones we quote) are shown ex-VAT (excluding VAT), with 20% added on top when you’re actually invoiced.
If your business is VAT-registered#
You can generally reclaim the VAT as input tax, subject to your normal VAT position, so the VAT element is usually neutral and the real cost to you is the net figure. Compare quotes on the net (ex-VAT) number.
If your business isn’t VAT-registered#
You can’t reclaim it, so the 20% is a genuine extra cost. On a roughly £450 shop licence that’s about £90 a year you won’t get back: worth remembering when you’re budgeting or comparing options.
The confusion around exempt venues#
Some venues (certain education, health or charitable settings) make VAT-exempt supplies of their own, which leads people to assume VAT shouldn’t apply to their music licence. It generally still does: VAT follows the supplier’s standard-rated supply (PPL PRS’s), not the customer’s VAT status. If you’re unsure how it applies to you, check with your accountant.
When we quote a figure we always show it ex-VAT and flag the VAT on top, so you’re comparing like with like. Want your invoice checked line by line? See how we check it.
- How much does a business music licence cost? →
- How TheMusicLicence is calculated →
- Music licensing glossary →
Common questions
- Is there VAT on a PPL PRS music licence?
- Yes. TheMusicLicence is a standard-rated supply, so PPL PRS adds VAT at 20% to your licence fee. The tariff figures PPL and PRS publish are shown ex-VAT, with 20% added on top when you're actually invoiced.
- Can I reclaim VAT on my PPL PRS licence?
- If your business is VAT-registered, you can generally reclaim the VAT as input tax, subject to your normal VAT position, so the VAT element is usually neutral and the real cost to you is the net figure.
- Does VAT on a music licence cost more if my business isn't VAT-registered?
- Yes. If you can't reclaim it, the 20% is a genuine extra cost. On a roughly £450 shop licence that's about £90 a year you won't get back, worth remembering when budgeting or comparing options.
- Does a VAT-exempt business still pay VAT on its music licence?
- Generally yes. VAT follows the supplier's standard-rated supply from PPL PRS, not the customer's VAT status, so even certain education, health or charitable settings that make VAT-exempt supplies of their own would still normally see VAT on the licence.
Want it checked or set up properly?
- Already paying? Send your latest invoice for a free check and a plain-English answer within five working days.
- Four or more sites? A free estate check, site by site, with a clear summary of anything that's off.
- No licence yet? We tell you exactly what to declare and make the application for you.
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Related guides
This guide is general information, not legal advice, and MLC is an independent consultancy, not affiliated with PPL PRS Ltd, PRS for Music or PPL.