Taxation of works of art
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The purchase or sale of a work of art is subject to a special tax regime.Application of VAT during a purchase and taxation on the capital gain in the event of a sale, here is all you need to know on the taxation of works of art.
Taxation when buying a work of art
When purchasing a work of art, the purchaser pays VAT at the rate of 20%.This rate can be reduced to 5.5% if the purchase is made in France or directly from the artist or his successors in title; on the other hand, if the work of art is purchased from a seller who is not subject to VAT, no VAT applies.outside the European Union, the applicable VAT rate is 5.5%.
>> Read also - Investing in art
Taxation on the sale of a work of art
Transfers of works of art are not exempt from taxation, as they are taxable in the category of capital gains on metals and other precious objects.If the sale of the work of art takes place in France, the capital gain is then taxable in France.This tax applies to works of art, jewelry, antiques, collectibles and precious metals.
At the time of the sale of the work of art in France, the seller can opt either for a flat-rate taxation or for the general system of capital gains.
Posted Date: 2020-09-06