I'm an artist in the US and I got into an art show in the UK. I am planning to send two paintings on paper to a framer there to save on shipping. What I'm wondering is, even if this isn't a sale and a sale isn't guaranteed, do I have to pay VAT? Or does the framer pay VAT? Once its framed, it will be shipped domestically to the gallery. If the painting sells, the gallery will collect VAT. So, that means I have to pay VAT twice on it? Or…

As I'm navigating all of this, I'm wondering if I should just frame them here after all and ship them straight to the gallery.


2 comments

  2. Quick search shows that artworks will be subject to 5% VAT on import, even if they are for onward sale. The gallery then reclaim this as input VAT and charge output VAT on the price they sell for.

    So the sequence is:

    The gallery will pay 5% VAT when the painting arrives in the UK. There is no import duty payable on artworks.

    The gallery send the painting to the framer. The framer may charge the gallery 20% VAT on their price, depending on the size of their business. Smaller businesses are not required to charge VAT.

    The gallery claims the 5% VAT charged on import plus the 20% VAT they paid the framer (if they did) as “Input VAT” and this is deducted from their tax bill.

    The gallery charges 5% VAT on the selling price when they sell the paintings.

    Edit: To clarify how VAT works in the UK (and the EU) a business is required to charge VAT on all their sales – “Output VAT”. They then deduct the VAT they have paid to other people on the purchase side when buying stock and services – “Input VAT”. The balance is sent to His Majesty’s Revenue and Customs (HMRC).

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