VAT Reform on the Art Market: Toward a New Regime

Under European pressure, Belgium is reforming its VAT system for works of art, antiques, and collectibles to avoid competition distortions arising from the margin scheme.

Current Situation

In effect since 1995, the margin scheme applies VAT (21 %) only to the value added (resale price – purchase price). For example: purchased for €1,000, resold for €1,300 → 21 % VAT on €300, which equals €63, without any upstream deductions.

Proposed New Regime

Starting January 1, 2025, for certain cases defined by the European directive, VAT will be applied at 6 % on the total price, with the right to deduct. Example: €1,300 → about €78 VAT, but it can be partially refunded.

European Regulatory Context

The directive imposes this regime in two situations:

1. Imported works of art benefiting from reduced VAT (6 %).
2. Works purchased directly from the author.

Outside of these contexts, the margin scheme will remain possible. The main objective is to prevent unjustified tax exemptions in certain cases.

Sector Reactions

The Chamber of Antiquarians (ROCAD) has strongly opposed an automatic shift to 21 % on the total price. They fear a loss of competitiveness and a relocation of transactions to neighboring countries (France, Luxembourg, etc.) that have already adopted reduced rates. The compromise of 6 % is therefore seen as acceptable, although less advantageous in certain cases.