Comments on ECJ C-433/24: Profit margin scheme also applicable after the purchase of an art object from the artist’s company

• Advocate General Szpunar has determined that resellers can apply the margin scheme to works of art acquired from their creators through a legal entity, provided the creator holds sufficient influence within that entity.
• In the case involving Galerie Karsten Greve (GKG) and artist Gideon Rubin, GKG faced additional VAT assessments for allegedly misapplying the margin scheme when selling paintings acquired from Rubin’s company.
• The conclusion emphasizes that for the margin scheme to be applicable, the creator must have decisive voting power in the legal entity regarding the sale, and a significant portion of the sale proceeds must benefit the creator’s assets.

Source Taxlive

See also

• ECJ C-433/24 (Galerie Karsten Greve) – AG Opinion – AG supports VAT margin scheme for art via legal entities – VATupdate

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