Germany Reduces Art Sales VAT to 7%
The German government has approved a reduction in value-added tax (VAT) for art sales to a reduced rate of 7%, effective from January 2025. This move addresses a long-standing demand from dealers who have been at a disadvantage compared to competitors in other countries under the current 19% rate. The cabinet approved this change as part of a package of tax law adjustments. The culture minister, Claudia Roth, stated that this reduced rate sends an important signal of support for the art market and galleries. The reduction comes after Germany had to scrap its previous 7% rate in 2014 due to European Union directives. A new directive passed in 2022 permits reduced VAT rates on the supply of works of art, collectors’ items, and antiques, with countries required to align their laws by the end of 2024. The Bundesverband Deutscher Galerien und Kunsthändler (BVDG) has been advocating for the reintroduction of the 7% rate for the past decade, citing the negative impact of the 19% rate on the art market. The BVDG welcomed the change, stating that it will enhance the competitiveness of the German art market.
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Cillian O’Rourke, studied at the National College of Art and Design in Dublin, Ireland, where he majored in Visual Communication. His work spans graphic design, illustration, and branding, with a distinct minimalist style that emphasizes simplicity and impact. Cillian has collaborated with international brands and runs his own design studio focusing on creative solutions for startups.