VAT and artist's VAT
Below you can read about the special rules for VAT that visual artists are covered by.
VAT registration in Sweden
In the following cases, you must always register for VAT:
- First-time sales of own works of art exceed DKK 350.000 in a single year
- Turnover in your other artist business, which is not exempt from VAT, exceeds DKK 50.000
You can also choose to register for VAT before you reach the amount limits. Some artists choose this solution, e.g. in order to obtain benefits from the VAT system. It can, for example, be the case if you are associated with a gallery, regularly receive grants or subsidies for your art production or have major art assignments.
Visual artists are covered by special rules for VAT
For visual artists, it may be that you have to settle VAT according to 3 different VAT rates, namely 25% (ordinary VAT rate), 5% (art VAT) and 0% (VAT-free services).
Standard VAT – 25%
All businesses must be registered for VAT when the turnover exceeds DKK 50.000. This also applies to artistic companies. However, it will often only be part of the artistic activity that is covered by the normal VAT rate. These are tasks that cannot be attributed to the rules for artist VAT or as VAT-free artistic services. Exhibition remuneration, which only concerns the lending of works, will always have to be included under the normal VAT rate.
Artist VAT – 5%
If an artist's sales of his own works during the year exceed DKK 350.000, he becomes liable for VAT for the rest of the year and the following year.
VAT must only be paid on sales that take place after the registration obligation has occurred. The registration obligation can come into effect during the year. When it ceases, it will always be at the end of a year. If the registration obligation has ended, no VAT must be paid on sales after this time.
The basis for calculating the output VAT for artists' first sales is 20 per cent of the sales sum, corresponding to an effective VAT rate of 5 per cent (20 per cent of 25 per cent).
The basis for calculating the input VAT is the costs for the purchase of materials etc. for the production. There is a right to deduct the entire VAT amount, that is 25 percent.
VAT exemption – 0%
According to the VAT Act, writing and composing activities as well as other artistic activities are exempt from VAT. Other artistic activity means lecturing, performance and the like.
One series of art assignments will typically be covered by the area of VAT-free artistic services. This applies, for example: Teaching, performance, artist talks, projects under the house artist scheme, illustrations for magazines, etc.
Art assignments have in some cases been considered the delivery of an artistic service rather than the delivery of a work of art.
Works of art covered by the rules for artists' VAT
- Goods that fall under CN code 97 01 in the combined nomenclature of the Customs Tariff. This means paintings, collages and the like. drawings and pastels that the artist made exclusively by hand.
- Goods that fall under CN code 97 02 in the combined nomenclature of the Customs Tariff. This means original etchings, prints and lithographs.
- Sculptures falling under CN code 97 03 in the combined nomenclature of the Customs Tariff, made by the artist, including casts of sculptures in a number of no more than eight copies.
- Tapestries and wall textiles falling under CN code 58 05 and 63 04 in the combined nomenclature of the Customs Tariff, made by hand on the basis of the artist's original drawings, provided that there are no more than eight copies of each.
- Ceramic uniques made by the artist and signed by him.
- The fact that the artist works from a theme and produces different variants does not necessarily deprive the objects of their character of uniqueness, cf. TfS 2000, 156.
- Enamel work on copper done exclusively by hand in a number of no more than eight copies, which are numbered and signed by the artist or by the artist's studio, except for jewelery and gold and silversmith work.
- Photographs taken by the artist, printed by him or under his supervision, signed and numbered in a number of up to 30 copies, regardless of formats and substrates.
Artikler's report
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Member has been required to pay full tax on a production grant from the Statens Kunstfond.
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