Art is also a good subject toIVA and for Italy it is fixed at 21%. A rate that certainly cannot help collectors to invest in art, placing the asset in a purchase category of exclusive value. Consider that the lowest value present in Europe is equal to 5% in Cyprus, 8% in Switzerland, 15% in Luxembourg and Cyprus, 18% in Spain, 19% in the Netherlands, 20% in % in several countries, reaching the highest ceiling of 25% in Sweden, Denmark and Hungary. While the VAT drops when it comes to importation, i.e. when the goods are purchased abroad and brought to Italy, in this case it is 10%. The same rate is applied to transfers made directly by the artist.
While for the following right, better known as Droit de suite, which obliges the payment to the authors of a part of the proceeds of all subsequent exchanges. This right, in the event of the artist's death for less than 70 years, must also be paid to the heirs. It is not applied to video art and never below for any kind of art, when the price is less than 3 thousand euros.
0 to 3,000 = 0
3,001 to 50,000 = 4%
50,001 to 200,000 =3%
200,001 to 350,000 = 1%
350,001 to 500,000 = 0,5%
501,001 and up = 0,25%
The operator has the obligation (within 90 days) to report the sale to the SIAE, which, if it has withheld a commission, will pay the remaining consideration to the artist or his heirs. If there are no heirs, everything is paid to Enap. Failure to pay provides for the suspension of the commercial-professional activity from 6 to 12 months and a fine ranging from 1,034 to 5,165 euros.
It is clear that VAT + Droit de suite increase the price of the work, which we can define as equal to a 25% increase, this determines a lower interest in buying works of art, we can therefore say that this can represent a real own deterrent element for those who want to approach the collecting of works of art.
