Outstanding Sales Tax Options Now

Establishes, for intra-community trade a specific system which derogates from the usual rules of taxation insofar as it provides that sales made by merchants called taxable resellers, as opposed to other taxable companies but whose profession is not to trade in art are taxed in the countries of origin and not in the recipient country, regardless of the quality of the buyer (professional or private). Use the online sales tax calculator for the best result.

The Right Choices

Reserve for certain operations and in particular for imports of works of art, collectibles or antiques, as well as sales of works of art by the artist or his beneficiaries the application of a reduced Sales tax rate equal to 5.5%. This amounts to saying, on the contrary, that transactions carried out in our country by professionals are taxed at the standard rate (20.6%) without making any difference between those relating to works of art and those relating to works of art. that apply to collectibles or antiques.

  • The general principle is that the tax base is the profit margin. In fact, are automatically subject to the margin regime:
  • On the one hand, “deliveries of goods purchased from a non-liable person”, that is to say in particular sales made by a professional of works, of objects he has acquired from a private individual;
  • On the other hand, “deliveries of goods purchased from a person who is not authorized to charge Sales tax for such delivery”. It is about the sales of works of art or of objects which the merchants bought near the artists profiting from the franchise in matters of Sales tax 56 or near other professionals who, them also, apply the system taxation on the margin.

In addition, professionals can apply to benefit from the margin regime when the works and objects they sell have been imported from a country outside the Community.

In most cases, professionals make use of the possibility thus offered to them of paying Sales tax on the margin, even if they still have the possibility of adopting the general system, that is to say paying the Sales tax on the total sale price and to be deducted from the tax incurred during the purchase.

They can calculate this margin in three ways: either “piecemeal”; either globally for a given period; or flat-rate, by applying a determined margin rate.

The “piecemeal” margin calculation

The expression “piecemeal” means that the margin is calculated on a transaction-by-transaction basis. The tax base is then made up of the difference between the sale price requested by the merchant and the purchase price of the good in question.

Only the beneficiary operations bear the tax. However, this system has the drawback of not making it possible to offset the positive margin obtained on a good transaction by the capital loss made on a loss-making transaction.