Partial VAT Margin Scheme Abolition: Impact on Art and Antiques Market

• Partial elimination of VAT margin scheme will affect the antiques, art, and collectibles market
• Amendment to the VAT law effective from January 1, 2025, will allow exemptions for small businesses and change the rules for applying the VAT margin scheme
• New regulations restrict the VAT margin scheme to cases of import or acquisition of art or collectibles when a reduced VAT rate is not applied
• Changes will revoke the ability to use the scheme when the taxpayer personally imports goods or when art is supplied by creators or their legal successors to a taxpayer not using this procedure
• Katarzyna Trzaska-Matusiak, a tax advisor, explains that these changes are unfavorable for most taxpayers
• Specifically, from January 1, 2025, the VAT margin scheme cannot be applied in transactions involving art, significantly increasing the tax burden
• In an example, the tax payable on the sale of an artwork under general tax rules increases by 1,736 PLN, reducing the profitability of art transactions

Source: mddp.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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