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Switch from 19% standard to 7% reduced VAT rates January 2025
The Value Added Tax rate on the sales of art work in German will fall from 19% to 7% from 1 January 2025.
This is a return to the reduced rate reverses the hike of 2014. At that time, Germany had to increase VAT on art sales since it was not included in the EU VAT Directive on the list of supplies eligible for a reduced VAT rate. However, since the 2022 introduction of reduced VAT rates freedoms, Germany can now deploy the reduced rate on a wide range of transactions.
The higher rate has been putting German art dealers at a significant disadvantage as most other countries have
“The reduced rate is an important signal, particularly in difficult times, for the art market and the cultural contribution made by galleries,” said the culture minister, Claudia Roth, in a statement.
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