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.
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? Send it over — free. No savings, no fee.
- How much does a business music licence cost? →
- How TheMusicLicence is calculated →
- Music licensing glossary →
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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.