Tax and customs law

Customs duties apply to the import of goods. For works of art, they are often zero or reduced, under specific provisions or the WCO agreement on cultural goods. VAT and consumption taxes apply to sale or import and vary greatly from one State to another.

Finally, capital gains taxes and inheritance duties affect the seller or the heir. Their regime depends on the tax residence of the person concerned and the length of time the work has been held.

The best way to limit unpleasant surprises is to calculate the total cost before deciding. A Desk simulator makes it possible to estimate, for a given route, all the fees, duties and taxes from the price, the value, the nature of the work and the States concerned.

OIMAP also recommends consulting a tax adviser for any transaction above €100,000, and using, where possible, suspensive regimes (temporary admission, customs warehouse) that defer taxation.

Tax treaties between States prevent the same capital gain from being taxed twice and provide for the exchange of information. Forty-one treaties expressly cover works of art. They specify in which State the gain is taxable, and how tax already paid is taken into account.

For a collector resident in one State and selling in another, reading the applicable treaty can mean a significant saving. It is one of the areas where specialist advice is most profitable.