Fortius enables you to benefit from a VAT suspension regime for your art collections
By storing your art collections in Fortius’ facilities, you benefit from a flexible and advantageous tax regime. This beneficial regime is specific to our very exclusive location in the free port area of Luxembourg airport. Our unique tax regime is limited by a few conditions detailed below.
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Your art collection is organized as a taxable wealth management structure, family office, a foundation, a trust, or a museum ?
The general principle of the suspensive VAT regime
According to the general tax code, a work of art is subject to VAT in the same way as any object of consumption. However, the VAT suspension regime will benefit a sophisticated collector since they will only pay VAT on a work of art if he / she enjoys it fully, e.g. by exhibiting it at home.
In order to benefit from the deferral of VAT, a collector agrees to give up the freedom to do with their artwork as they please. This means that, in order not to have to pay VAT at the applicable rate, the art collector must demonstrate that they have stored their property in a free zone.
It is interesting to know that this special regime applies to a work of art as long as it stays in our facilities, for an indefinite period.
Also, sales made in one of our showrooms will also benefit from the VAT suspension regime.
Take advantage of our advice on VAT suspensive arrangements for your art collections
A tax system that is unique in Europe regardless of the origin of the collector's items
The VAT suspension regime for your art collections applies to all works stored in our facilities, regardless of their origin.
Thus, intra-community acquisitions or those made in a country outside the European Union such as Switzerland, the United Kingdom or the USA are eligible to benefit from this unique tax regime.
The VAT suspension is extended to all our services
In addition to a VAT suspensive regime on works stored in the Luxembourg High Security Hub, all the services provided by our team benefit from the same exceptional regime.
Thus, handling, valuation, restoration of works or even our photography service all benefit from VAT deferral.
Who does the VAT suspension regime apply to?
All players in the art market can benefit from the VAT suspensive regime, whether they are discerning or beginning collectors as well as dealers, working in an art gallery or not. And this, regardless of their place of residence.
Overview of the advantages linked to the suspensive tax regime
The suspensive tax regime in Luxembourg is advantageous for two reasons.
First, this special regime allows the payment of VAT to be deferred. More specifically, this allows collectors to improve their cash flow for the duration of storage.
Then, the suspension allows collectors-investors to improve the return on their investment, either by passing the burden of VAT to the buyer, or by using a VAT exemption mechanism (e.g. export) during the sale. Consult Fortius to understand all about these benefits.
Exit from the suspensive
The VAT on the artwork and services must be settled only when permanently leaving the free zone.
Thus, in order to be able to regain full control over the artwork, its owner agrees to fully pay the duties and taxes suspended on the work and the services provided in a free zone.
In all other cases, it is possible to maintain the suspension when participating in exhibitions or for sale outside the free zone.
It is interesting to note that VAT can also be offset by exporting the work outside the European Union.
Good advice is worth its weight in gold
In tax matters, all cases are different and deserve a thorough analysis in order to find the best way forward. Whether you are an art dealer or collector, buyer or seller, art lover or informed investor, let our experts guide you so that together we can find the best solution for your specific situation.
Book a call with Claude to benefit from our advice.