In a significant move to support the cultural sector, the German government has announced a reduction in the VAT rate on artwork sales from 19% to 7%. This change, set to take effect in January 2025, marks a pivotal shift in policy aimed at bolstering galleries and art dealers throughout the country.
The initiative reverses a decision made 10 years ago when the tax benefit was removed for dealers following an EU directive. Currently, only direct sales made by artists are eligible for the reduced, 7% rate—beginning January 2025, this will be extended to gallery sales, too.
The Federal Association of German Galleries and Art Dealers (BVDG), which has long argued that the removal of the tax reduction created a competitive disadvantage in the market, welcomed the change. “Galleries are finally being treated the same as artistic creators and many other cultural businesses. This strengthens their competitiveness and prepares them for the future,” said a BVDG spokesperson in a statement.
As business costs increase for galleries across the spectrum (as detailed in Artsy’s Art Industry Trends Report 2024), this tax cut represents a supportive move in economically challenging times. “The reduced VAT rate is an important signal for the art trade and the cultural contribution of the galleries,” said Germany’s Minister of State for Culture Claudia Roth.
from Artsy News https://ift.tt/jR2w986
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