By: Maria de Peverelli
A transport handbook for art collectors
Maria de Peverelli shares some considerations for art collectors, post-Brexit
On 1 January 2021 the UK withdrew from the European Single Market and Customs Union. New procedures are being introduced on the import and export of goods, which will affect the circulation of artworks and valuables between these two regions. In this short note Maria de Peverelli, Partner and Executive Chairman of Stonehage Fleming Art Management, shares some of the new measures adopted so far:
- Items transported between the UK and the EU are no longer classified as ‘free circulation’. If your artworks are moving across the Channel for private use in a residence, import Value Added Tax (VAT) will be due, based on the CIF (cost + insurance + freight) value of the artwork.
- Customs controls have tightened. Art shippers are obliged to raise a Customs Entry for any movement between the UK and the EU.
- Artworks that have moved between the UK and the EU within the last three years can be classified as ‘Return Goods’. If the relevant proof of origin exists and the items have not changed ownership, they may return free of import charges.
- The EU continues to operate a ‘free circulation’ zone. Items imported in a member country will not incur further import charges when transported within the zone. Each member country adopts its own regulations and import charges.
Export & import procedure
- Companies exporting or importing from the UK must have a valid UK Economic Operator Registration and Identification number (EORI). Companies with an EU EORI number must also apply for a UK EORI number. The application is free of charge and allows businesses to be named on customs procedures.
- Private individuals do not need to be EORI registered if they import as private residents (GB PR).
Export licenses
- Customs will request an export license to transport artworks outside the UK that reach or exceed a specific age and value threshold. The purpose of this procedure is to give the state an opportunity to retain cultural artefacts of national importance.
- The time it takes to process an export license application varies and may affect shipping schedules.
Bonded warehouses
- The bonded warehousing procedure in the UK has not changed. This means that artworks can enter the country without paying import taxes as long as they remain in bonded warehouse storage.
- If there is a change of ownership, Import VAT will be due.
There are numerous factors to take into consideration when transporting works of art between the UK and the EU, starting with customs procedures for trusts, companies and individuals which vary in each country, and the requirements that enable the free circulation of specific cultural objects, based on age, origin and reason for transport. Get in touch with Maria to discuss any topic raised in this article or which may be of interest to you. Email Maria.
Maria is a Partner and Executive Chairman of Stonehage Fleming Art Management, serving a client base that includes individuals, family offices, foundations, trusts and estates.
Below a table with Import VAT rates for Artworks in the countries we operate in most frequently . [1].
E.U. |
---|
Austria |
5.4 - 13% |
Belgium |
6% |
France |
5.5% |
Ireland |
13.5% |
Italy |
10% |
Luxembourg |
8% |
Netherlands |
9% |
Portugal |
6 - 23% |
Spain |
10% |
Sweden |
12% |
NON E.U. |
---|
United Kingdom |
5% |
Switzerland |
7.7% |
[1] * Additional import duties or tariffs may apply on certain goods or if items are imported for commercial purposes.
** Covid-relief measure: Austria’s import VAT has been temporarily lowered to 5.5%
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