The art market becoming increasingly international, collectors, dealers and other art market participants are more often than not faced with cross-border matters arising from transports from one country to another. One such cross-border matter is payment of import VAT.
The principle of free movement of goods applies throughout the EU and consequently the movement of goods within the EU's borders is not subject to import VAT. So, shipping a painting from Germany to Greece is VAT-free.
But what happens when European-based buyers acquire a work of art from the US or China and want to enjoy it at home? In this case, import VAT becomes an increasing consideration. Why?
Unless an exemption applies, importers of art, antiques and collectibles will be liable to pay VAT for importing a work of art in the EU. Depending on the country, a standard VAT rate (between 15% - 27%) or a reduced VAT rate (between 5% - 18%) will apply.
France applies one of the lowest import VAT rates for art, antiques and collectibles in the EU, at 5.5%. Greece generally applies a high 24% rate, but has recently introduced a temporary import VAT reduction for certain artworks at 13% which will apply until 31.12.2021 (for more information on Greece’s temporary VAT reductions click here).
So, be smart if you want to import an expensive work of art in Greece from China, the US or any other place outside Europe; it may be more cost-effective to first ship the work to France, pay there 5.5% import VAT and then ship it freely to its final destination in Greece without being liable to pay the higher Greek VAT rate.
(NOTE: always seek counsel before deciding on an import or export strategy, as each case may differ and exceptions may apply).