We have a client who operates an art gallery. They display the artwork in th UK and sell them on behalf of artist from all over the world. When the "consumer" is invoiced it is done in the name of our client (not the artist) so I'm thinking our gallery is an "undisclosed agent"
I've been reading the VAT Notice (sections 22 onwards). According to section 24 we need to apply the revised VAT treatment which means we have to account for acquisition tax etc.
Can someone please confirm my understanding or if I've got it wrong, could clarify the position?
Gallery sells a painting done by an artist in the Member State
Art gallery sells painting for £10,000 + VAT.
Gallery keeps 50% commission (so £5000 + VAT)
Artist is sent the balance of £6000
On the VAT return we would show therefore
Box 1 £2000
Box 2 £1000
Box 3 £3000
Box 4 £1000
Box 5 £2000
Box 6 £10000
Box 7 £5000
Box 8 NIL
Box 9 £5000