Art sales VAT hike French market hot


Columns signed by many famous artists published in world, Dealers and gallerists had heated discussions on social networks, and Gabriel Attal, the minister’s representative in charge of public accounts, made it his duty to meet urgently, if not to reassure all these beautiful people, Bercy made sure “Nothing should endanger the French art market or prevent its participants”few news articles have caused such a stir.

Titled ‘How France is poised to disrupt its art market’, thanks to our colleague Martine Robert, echoShe writes that our country, which has risen from 3% of the world art market to 7% in 20 years and now accounts for only half of the European market, will “Lifting a rock to shoot itself in the foot” By adopting – this must be done before 1Well January 2025 – A European Union Council (EU) directive of April 2022 increases VAT on art sales, currently at 5.5% (with the exception of France) to 20%, but also includes purchases from non-EU Imported VAT countries.

The current rate of 5.5 percent makes France, the region’s lowest bidder, the preferred gateway for importing works into Europe. This is as much – if not more – as the surge in foundations or the significant increase in art lovers and collectors, which is why for a few years, precisely since Brexit, all major foreign dealers have opened in Paris One of the reasons for opening a branch.

Also read: Articles reserved for our subscribers “A European directive on value-added tax risks drying up heritage and reducing cultural offerings”

From Ancient Paintings to Modern Art

Paris gallery owner Kamel Mennour wants to know: “I would be hesitant to accept new artists now if the increase is too big for me to sell them. » Currently, like his colleagues, he only pays VAT on resale profits, not on the full price of the work. Likewise, he represents several internationally renowned brands in France – the ones that have galleries in every country – and would find it difficult to explain to his European clients why they can get prices around 20% lower in New York or London Buy an artist. more expensive than domestic.

Another problem arises with old paintings and modern art. Many masterpieces, some of them French, are currently the property of foreign private collections. Merchants or auction houses have hitherto wanted to sell them in the Parisian market, and would have hesitated to do so, since the names of Nicolas de Stael or Soulages have struck the hearts of the French more than New Yorkers, unless eventually Buyer resides in Paris EU. In a completely different area of ​​the economy, the country becomes richer if the balance between imports and exports favors the former. In art, the opposite is true: the legacy dries up.

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