Customs procedures &
Exports taxes

PERMANENT EXPORT

IF YOUR SELL OR PERMANENTLY EXPORT A WORK OF ART ABROAD :

YOU ARE A PRIVATE INDIVIDUAL :

If you live in France and sell or export (to leave European territory) a work or piece of art permanently, it must comply with provisions relating to the tax on capital gains.
If you live in France and you sell or export definitively (output of the European territory) a work or piece of art, observe the provisions relating to the tax on capital gains.
Indeed, in French law, in the sale or export of a piece of art the tax system of capital gains applies to :
> Objects for which the declared value is less than 5000 euros are exempt from this tax on capital gains.
> For other objects (value above 5000 euros) two options are available :

– Special scheme of fixed tax :
La taxation de 6,5 % sur la valeur de l’objet déclarée en douane
This option is obligatory if you do not have any evidence to establish the origin of the work, its purchase price or the acquisition date (auction slip in public sale or seller invoice…).

– The general scheme of capital gains : (Article 200 B new CGI)
For this option you should make an “alternative declaration” (stating the values declared at customs) with your tax office. It will only be accepted on the express condition that you can prove the date and acquisition price of your work. A “certificate of acceptance of the option” by the tax service will then be returned to customs.
By choosing the general scheme you opt for an integration of real value in your income and you will have to complete a special declaration (2049) on your tax return. The use of the general scheme is particularly relevant when a work is held (with proof…) for over 12 years. Both systems can be advantageous for tax purposes; the choice between these two options is your personal preference.

AUCTION HOUSE & GALLERY :

If you sell a work or piece of art to a non-European buyer (outside European territory) :

> the VAT (20%) on the sale of the work of art which appears on the buyer slip or sales receipt, may be eligible for refund for the non-European resident from the auction house or gallery. For auction houses, this will require the buyer to present the document proving the permanent exportation of the work in the second month following the sale.
> The auction house or gallery can also make a sale, which is exempt from VAT when the immediate export by the buyer (non-European citizen) is certain. A buyer slip or tax-exempt commercial is then processed.

TEMPORARY EXPORT :

IF YOU EXPORT A WORK OF ART FOR POTENTIAL SALE WITH A TRADER, A FOREIGN AUCTION OR A FAIR/SHOW/EXHIBITION :

YOU ARE A PRIVATE INDIVIDUAL :

With temporary export procedures, a work of art may leave French territory exempt from taxes on exportation. To do this :
>  A deposit of the capital-gain must be placed,
>  The seller (exporter) will pay capital-gain on the sale if completed,
>  The seller (exporter) does not pay capital gain if the sale does not go through and the work of art returns.

GALLERY :

In the case of a Fair or Exhibition abroad for which we handle transportation to and from the location of the works on display for potential sale, we bring forth the works of France under temporary export. With this status, the works are unsold and returned to France (re-import), and benefit from the VAT exemption applicable to import (5.5% of the imported value) (see the next heading: « Customs and tax on imports »).