This classic commercial operation would have the validity of the new sales tax result. Others including Publishers Clearing House, offer their opinions as well. Rather take the greatest number of new galleries and art shops Works in Commission. The specifics of the Commission business close but the application of the new flat-rate differential taxation or even the feared General calculation of the full VAT rate for art objects (according to 12 UStG) from. Sale on behalf of a third party the Commission business is extensively explained in the commercial code ( 383-406 HGB). Essential regulations it but are unknown in everyday business or find little attention because they so believe to know everything from experience about the business of the Commission.
Who but always remember: the sales of a Commission are made on the name of the applicant, so the gallery or art, but on account of the principal, of the artist in whose ownership the plant is until substantiated the transfer payment by the applicant (section 383 HGB). In this paragraph is explained under par. 2 HGB, each Commission business to settle is also between partners, the no “Leading business operations in a commercial manner”, so with your company in the commercial register are, typically, is often the case with artists from art dealers. If the dealer on behalf of the artist performs a Commission, therefore the sales taxation must rules, that apply to the artist, which are works of art according to 12 UStG in Commission: it is definitely of the reduced VAT rate (currently 7%). The art trade agent acts as an intermediary for new works by contemporary artists on, not as a dealer broker versus dealer. He’s doing his actual task according to the teaching of the contemporary art (and not speculation on exorbitant profits or trade with reproductions). A dealer would alone bear the risk of an art object to expensive bought or sold cheaply to have or don’t sell.