While Spain had traditionally applied a general VAT rate on imports, sales and intra community acquisitions of works of art, collectors’ items and antiques, most EU member states were applying reduced rates: France, 10% Italy 1% Germany, 7% Ireland, 13,5%. Royal-Decree Law 1/2014 introduces paragraphs 4 and 5 in art. 91 of the VAT Act 37/1992, reducing the VAT general rate (21%) to a reduced rate (10%) for:
- Imports of works of art, collectors’ items and antiques, regardless of who imports them.
- Sales or Intra-community acquisitions of works of art carried out by authors/ right holders and by entrepreneurs (other than intermediaries of art. 136 VAT Act) entitled to a 100% VAT deduction.
Reduced rates will only be applicble for intermediaries when their buyer is not a reseller. Art Galleries are therefore analyzing the possibility of working on commission instead of assuming the sale risk.
Art. 135.Uno.3º of the VAT Act is also modified, including in the Special Scheme for second-hand goods, works of art, collectors’ items and antiques, the sales of those works of arts acquired from entrepreneurs or professionals in transactions where the reduced VAT rate was applied.