Understanding Import VAT for Art Collectors: A Comprehensive Guide
If you're an art collector buying artworks internationally, it’s essential to understand how import VAT and customs duties apply. This guide breaks down how these taxes work, how to avoid overpaying, and what to do if you're charged incorrectly.
What Is Import VAT? How Does It Differ from Standard VAT?
VAT (Value Added Tax) is a general sales tax applied within a country. Businesses charge it at the point of sale and pass it on to their local tax authority. VAT rates vary between countries. In the UK, standard VAT (20%) or marginal VAT could apply.
Import VAT is a tax paid when goods arrive from overseas, and it’s usually charged to the buyer by the courier or customs authority.
When you buy an artwork from an international gallery, you may:
- Receive a zero-rated invoice (VAT shown at 0%) if the artwork is leaving the seller’s country.
- Be charged local VAT upfront, which the seller then refunds after receiving proof of export.
Tip: Always confirm with the gallery what VAT scheme applies before completing your purchase.
Are Artworks Subject to Import Charges?
Yes, artworks can incur import VAT and sometimes customs duties, depending on the destination country’s tax laws.
For example:
Artworks imported into the UK are usually subject to import VAT and in some cases, customs duties.
Since Brexit, import VAT applies for artworks shipped between the EU and UK.
In some destinations, like Hong Kong, import VAT does not apply for artworks.
Tariffs in the US are still changing. For more info, see our other editorial: Do Trump’s Tariffs impact Art?
How Is Import VAT on Art Calculated in the UK?
In the UK, we benefit from a reduced import VAT rate of 5% which typically applies to:
- Original paintings and drawings
- Limited edition prints
- Limited edition sculptures
For Example:
Artwork price: £7,000
Shipping: £250
Total shipment value: £7,250
Import VAT (5%): £362.50 (plus any additional courier processing fees)
Import VAT is calculated based on the total shipment value, including the cost of the artwork, shipping, and insurance. This is detailed on the commercial invoice which accompanies the artwork in transit.
Do customs duties apply to artworks in the UK?
In most cases, original works of art are exempt from customs duty.
However, if the item is a reproduction or doesn’t qualify as “original” under UK customs classification, some duties may apply.
What Happens When Your Artwork Arrives in the UK?
When your shipment reaches UK customs, couriers like DHL or FedEx typically:
Submit the import declaration to HMRC
Pay any VAT/duty on your behalf
Send you a payment request before releasing the item for delivery
Some couriers require payment upfront before releasing the artwork. Others may deliver first and invoice later.
What to Do If You're Overcharged on Import VAT
It’s not uncommon for import VAT to be miscalculated, even if your documentation is correct.
For example, a 5% charge might be incorrectly processed at 20%.
When this happens, you need to dispute the invoice. In some cases, you can request an updated invoice before paying it, but in others you’ll need to pay and reclaim the overpaid import VAT later.
1. Request a Corrected Invoice Before Payment
If your artwork hasn’t been delivered yet:
- Contact the courier's customer service immediately
- Request a revised invoice reflecting the correct VAT rate
Note: Delays can result in the item being returned, so weigh the risks. Sometimes it’s better to pay an outstanding invoice and reclaim later.
2: Reclaim the overpaid import VAT from HMRC
If you’ve overpaid import VAT, you can apply for a refund from HRMC.
You’ll need:
- the original (incorrect) customs invoice from the courier
- the export and import documentation, confirming the MRN, EORI and shipment details
- your purchase invoice from the gallery
Most customs processing is digital. If printed copies don’t come with the shipment, you can request them from the courier, quoting your waybill/tracking number.
Tip: CHIEF and CDS are two customs processing systems. As of June 2024, all UK import declarations are processed through the CDS.
If you have any questions about the reclaim process, it’s best to chat with your local tax authority directly. HRMC have a helpful online chat function.
How Lougher Helps Art Collectors Navigate Import VAT
At Lougher, we have extensive experience in international art shipping and customs management. While we can't control VAT rates, we help clients avoid unnecessary charges by:
- Using accurate tariff codes and customs descriptions on commercial invoices
- Creating pre-alerts for high-value shipments to keep things moving
- Tracking every shipment from dispatch to delivery and liasing with couriers throughout the clearance process
- Working with specialist logistics partners to stay up to date with the latest import rules
Have a question about importing artwork or reclaiming VAT? Contact our team—we’re happy to assist.
Disclaimer: We are not tax professionals. This information is general guidance only and may change. Always consult your local tax authority or a specialist for tailored advice.
All information is correct as of 23/05/2025.
By Katrina Fray
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