France to raise VAT rate on art from 7% to 10% Jan 2014

  • Aug 28, 2013 | Richard Asquith

France to raise VAT rate on art from 7% to 10% Jan 2014

French VAT on the sale of art is to increase from 7% to 10% on 1 January 2014.

French VAT rate increases

This rise comes as French VAT rates are simplified to match EU VAT rates - including a higher standard rate and one single lower rate.  There are currently three lower French VAT rates: 5%; 7%; and 10%.  There is also a super reduced rate of 2%. The standard VAT rate is 19.6%, although the French VAT rate is scheduled to rise to 20% in 2014.  In general, EU VAT rates are on the rise, with the average VAT rate increasing from 19% to over 21% in the last five years.

The increase will be a blow to the French art market.  It's biggest competitor, London, only charges 5% UK VAT reduced rate.  Many auction houses will protest this rise as pushing international sellers out of their market.  A recent report by the French trade association warned this rise will hit the key Foire internationale d'Art Contemporain in particular.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara