The Ministry of the Economy on Friday proposed to actors in the art world, worried about a European directive on VAT, to work with them on "
two options"
, one of which is
"more favorable"
to the sector, but which assumes
“a cost”
that has not yet been quantified for public finances.
“A consultation will begin with professionals in the sector in the coming days with Bercy and the Ministry of Culture so that a decision can be taken this summer, for a provision included in the draft finance law (PLF) 2024 which will be then considered by parliament this fall.
We want to achieve the transposition of the directive by the end of 2023”
, said the Ministry of Culture during a telephone press briefing with Bercy.
“Maintain our current system”
The directive, adopted unanimously by the 27 Member States of the European Union in April, must be transposed into French law before January 1, 2025 and condemns the current special regime: it prevents the sector from accumulating a reduced rate of VAT 5.5% on the purchase of a work and “VAT on the margin” (the difference between the purchase price and the resale price) of 20%.
Artists, gallery owners and art dealers, who were not consulted upstream but were received on Friday by Gabriel Attal, Minister Delegate for Public Accounts, stepped up to warn of its consequences which would put their sector "in danger
" .
It is
“a major directive which concerns all VAT rates and not just those applicable to the cultural sector.
France, with regard to the rate applicable to art, fought to maintain the current rate but did not win the case”
, explained Bercy.
“If the directive prevents us from maintaining our current system, it allows us to extend the reduced rate (of 5.5%, editor’s note) to all transactions (…) which is seen favorably by the sector, but will have a cost for public finances which has not yet been quantified",
indicated the Ministry of the Economy, noting the government's desire to reconcile compliance with the European directive and the importance of the art for France.
A second option, excluded by players in the sector, would maintain the current VAT rate on the margin of 20% on resale but would abolish the rate of 5.5% on acquisition, which would increase to 20%.