|
It may be useful to distinguish between ‘tax’
and ‘duty’. We mean tax to be import tax, usually charged
at the entry point, and sales tax, a tax levied against the purchase
of items. This varies from country to country, even from state to
state, and is charged against any commodity, including fine art.
Please check with your local agent prior to import
Duty is tax levied on specific goods and commodities produced or
sold within a country. The level of duty is often contingent upon
the policies of the Government of the day to raise revenue for budgetary
purposes but is not levied against most forms of fine art; paintings,
sculpture and prints are exempt but photographs are dutiable in
many countries. Again, seek advice from your local agent prior to
import.
It is not usual for the consignor to pay taxes in the destination
country. In some cases, commercial galleries may agree to pay the
taxes on behalf of the consignee and payment would depend on the
arrangement between the consignor and consignee. It is highly unlikely
that you would be expected to pay taxes for Museum shows or traveling
exhibitions.
Most Government or publicly funded Institutions are tax exempt
in their own country. However, taxes are applicable for commercial
shipments and, sometimes, if the Institution intends to purchase.
In some European countries the shipment can be entered into an agent’s
bond, which means the tax is deferred and only paid if the Institution
acquires it.
If there is a tax issue, this can be resolved by use of a Carnet
(see Carnet section under Customs)
March 5, 2006
Chris Kneale
Martinspeed Ltd.
Great Britain
|
