Import works of art, antiques and collectors' items using the VAT margin or global accounting scheme
Using a VAT margin scheme or global accounting scheme for works of art, antiques and collectors items imported into the United Kingdom.
Imported goods are not normally eligible for the VAT margin scheme, but there is an exception for some goods. There are special rules you need to follow to tell HMRC if you opt to use the scheme, and special rules to calculate the margin and VAT due.
Imported goods eligible for the VAT margin scheme
You may choose to use the margin scheme or global accounting scheme for imports of:
- works of art
- antiques
- collectors’ items
These goods must be imported into either:
- Great Britain (England, Scotland or Wales) from countries outside the UK
- Northern Ireland from outside the EU and the UK
Find out what goods qualify as works of art, antiques and collectors’ items and how to value goods for import VAT.
Using the VAT margin scheme or global accounting scheme for imported goods
To use the VAT margin scheme or global accounting scheme for imported goods, you must:
- tell HMRC in writing that you are going to take up the scheme, and you must specify the date from which you will be applying it
- use the scheme for at least 2 years
- use the scheme for all transactions and goods, not just for certain categories of transactions or goods
- tell HMRC in writing when you wish to stop using the scheme
Contact HMRC by post to tell us that you are starting or stopping using the scheme.
Having notified HMRC, you may decide to sell goods covered by the option outside the scheme (for example, if you export the goods).
You cannot recover any input tax on those goods until the period which you account for VAT on their sale, or the period which you make the export.
Valuation
There are special rules for the valuation of imported works of art, antiques and collectors’ items. The goods must initially be valued in accordance with normal customs rules but for VAT purposes only, the value is 25% of the customs value. VAT is then calculated as normal on that reduced valuation.
Example
If the customs value of an imported work of art is £10,000. The value for VAT purposes is £10,000 × 25%: £2,500. This means the VAT due on import is £2,500 × 20% which is £500.
Find out how to value goods for import VAT.
Calculating the margin and VAT due
This section of the guidance is currently under review and will be updated soon. You may continue to calculate the margin as you normally would for antiques, works of art and collectors items.
Temporary Admission
Works of art, antiques and collectors’ items imported into the UK may be eligible for Temporary Admission (TA). This allows the liability to duty and VAT to be suspended, subject to certain rules.
If the goods are subsequently released into ‘free circulation’ in the UK, then:
- VAT must be accounted for at the time of release
- the reduced valuation must be applied at the time of release
If the goods are subject to auction while in Temporary Admission, then the value of the auctioneer’s services must be accounted for on release of the goods to free circulation, separately from the goods. You will find details of the treatment of auction fees in the auctioneers’ VAT margin scheme.
Artist’s resale right charges
Artist’s resale right (sometimes known as Droit de Suite) is a royalty which may be charged when original works of art are re-sold. It was introduced into the UK in 2006. These charges are outside the scope of UK VAT. They have no impact on margin scheme calculations. You must not reduce your margin by the cost of these charges.
Records to keep
You should keep the normal VAT margin scheme records or follow the record keeping requirement for the global accounting scheme.
VAT returns
You must show any goods you buy or sell using a margin scheme on your VAT return.