My client has imported a painting from US (they are a dealer so business item).
Via the carrier, they have been charged import VAT of 5%. I can't find paintings etc. on the list of items chargeable at the reduced rate. Any ideas why not charged 17.5%?
Many thanks,
DP
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VAT notice 702
The following is a quote from VAT notice 702 :-
3.4 Imported works of art, antiques and collectors’ items
Certain works of art, antiques and collectors’ items are entitled to a reduced valuation at importation. This is reached by calculating a value for duty using the appropriate duty method, adding any additional costs (see paragraph 3.1) and multiplying the total by 28.58%. Applying the 17.5% rate to this value gives an effective VAT rate of 5%. From 1 September 2006, any auctioneer's commissions relating to the sale by auction of such goods while they are subject to customs temporary importation arrangements should be no longer included in the valuation of the goods for import VAT purposes. See paragraph 3.6 for details.
The notice itself can be downloaed from :-