1. Forum
  2. Usenet
  3. MISC.TAXES.MODERATED

  • VAT Required?

    From bc@21:1/5 to All on Wed Feb 16 14:39:13 2022
    Client is a US-based artist. Client is about to enter into a
    transaction to sell three pieces to Netherlands resident. Sales
    price might be about $140k US. Historically, sales have gone
    through galleries who handle these issues.

    Does Client have an obligation to collect (and pay) VAT? If so,
    how does Client remit it? Where? Is 20% the correct rate?

    If there is no obligation to collect (or pay) VAT, why? I'd like
    to put it in my file and have Client retain a copy in their file
    in case the matter comes up.

    It looks like there may be a registration requirement if sales
    exceed $85k euro. If this is true, can Client avoid registration
    be entering into three separate transactions for the three pieces?
    Or is this going to trigger some version of "structuring"?

    What other things should I be worried about?
    --
    Bruce Davidson Cantor, CPA, JD
    Admitted in Colorado

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From John Levine@21:1/5 to All on Thu Feb 17 00:15:08 2022
    According to bc <cantor2@ix.netcom.com>:
    Client is a US-based artist. Client is about to enter into a
    transaction to sell three pieces to Netherlands resident. Sales
    price might be about $140k US. Historically, sales have gone
    through galleries who handle these issues.

    Does Client have an obligation to collect (and pay) VAT? If so,
    how does Client remit it? Where? Is 20% the correct rate?

    How is the client planning to deliver the paintings? If the buyer
    comes to the US and takes them home, the VAT is the buyer's problem.
    If your client is planning to ship them or take them himself, the VAT
    is your client's problem, because the paintings aren't going to get
    out of customs until the VAT is paid. If the purchaser is a Dutch
    business there is a provision for reverse-charging VAT but it doesn't
    sound like that is the situation here.

    Given the size of the sale, I would suggest finding a customs agent
    that understands this stuff. It won't be free, but it's better than
    getting $140K of art stuck in customs. I don't know whether your
    client will have to register for Dutch VAT but if he does, it's a
    bunch of paperwork but it's not expensive. It might be a good idea if
    he expects to sell art to other people in the EU since he should be
    able to use a Dutch VAT account to import anywhere in the EU.

    By the way, I think the VAT on fine art is 9% but the customs agent
    would know that.

    --
    Regards,
    John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
    Please consider the environment before reading this e-mail. https://jl.ly

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From bc@21:1/5 to All on Thu Feb 17 16:54:13 2022
    On Thu, 17 Feb 2022 00:15:08 EST, "John Levine" <johnl@taugh.com>
    wrote:

    According to bc <cantor2@ix.netcom.com>:
    Does Client have an obligation to collect (and pay) VAT?

    How is the client planning to deliver the paintings? If the buyer
    comes to the US and takes them home, the VAT is the buyer's problem.
    If your client is planning to ship them or take them himself, the VAT
    is your client's problem, because the paintings aren't going to get
    out of customs until the VAT is paid. If the purchaser is a Dutch
    business there is a provision for reverse-charging VAT but it doesn't
    sound like that is the situation here.

    Client shipped the art to the Netherlands as "presentation
    materials" because he was intending to show them, not sell them.

    By the way, I think the VAT on fine art is 9% but the customs agent
    would know that.

    I saw a note about that, yesterday evening.

    I have a call scheduled with an Avalara representative tomorrow
    morning. Perhaps he will finally be able to shed the necessary
    light on what to do now.
    --
    Bruce Davidson Cantor, CPA, JD
    Admitted in Colorado

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)