Page 191 - Sothebys Fine Chinese Art London, November 2018

Buyers are advised to inspect the lot and 3. PROPERTY WITH A † SYMBOL and hence will charge an amount in lieu of Where the buyer carries purchases from
to contact Sotheby’s prior to the sale to These items are standard-rated and will be VAT at the standard rate on this premium. the EU personally or uses the services of
discuss any specific shipping requirements. This amount will form part of the buyer’s another shipper, Sotheby’s will charge the
sold under the normal UK VAT rules. Both premium on our invoice and will not be VAT amount due as a deposit and refund
Please refer to VAT information for Buyers the hammer price and buyer’s premium will separately identified. it if the lot has been exported within three
for VAT symbols used in this catalogue. be subject to VAT at the standard rate. months of the date of sale and the following
Value Added Tax (VAT) may be payable Please see ‘Exports from the European (VAT-registered buyers from the EU conditions are met:
on the hammer price and/or the buyer’s Union’ for the conditions to be fulfilled before should note that the import VAT charged
premium. Buyer’s premium may attract a the VAT charged on the hammer price may on property released in the UK cannot • for lots sold under the margin scheme
charge in lieu of VAT. Please read carefully be cancelled or refunded. Sotheby’s must be cancelled or refunded by Sotheby’s, (no VAT symbol) or the normal VAT rules
the “VAT INFORMATION FOR BUYERS” always charge VAT on the buyer’s premium however you may be able to seek († symbol), Sotheby’s is provided with
printed in this catalogue. repayment by applying to HM Revenue appropriate documentary proof of export
for these lots and will neither cancel nor
refund the VAT charged. and Customs - see VAT refunds from HM from the EU. Buyers carrying their own
Revenue and Customs.) property should obtain hand-carry papers
VAT AND OTHER TAX (VAT-registered buyers from other (VAT-registered buyers from the UK from the Shipping department to facilitate
INFORMATION FOR European Union (EU) countries may have should note that the invoice issued by this process.
BUYERS AT BOOKS SALES the VAT on the hammer price cancelled or Sotheby’s for these items is not suitable • for lots sold under temporary importation
refunded if they provide Sotheby’s with their
The following paragraphs are intended VAT registration number and evidence that evidence in respect of import VAT.) (‡ or Ω symbols), Sotheby’s is provided
to give general guidance to buyers on the property has been removed from the UK This may enable a buyer who is VAT with a copy of the correct paperwork duly
the VAT and certain other potential tax within three months of the date of sale. The registered elsewhere in the EU to avoid completed and stamped by HM Revenue
implications of purchasing at Sotheby’s evidence of removal required is a certificate payment of VAT in the United Kingdom. and Customs which show the property has
book department sales. The information of shipment or, if the lots were carried by Re-invoicing in this way may make the lot been exported from the EU via the United
concerns the most usual circumstances and hand, proof of travel and completion of a ineligible to be re-sold using the margin Kingdom. It is essential for shippers acting
is not intended to be complete. In all cases form available from the Post Sale Service scheme. Sotheby’s will transfer all lots on behalf of buyers to collect copies of the
the relevant tax legislation takes precedence Group. sold subject to Temporary Admission to its original import papers from our Shipping
and the VAT rates in effect on the day of Custom warehouse immediately after sale. Department. HM Revenue and Customs
the auction will be the rates charged. It (All business buyers from outside the insist that the correct Customs procedures
should be noted that, for VAT purposes UK should refer to ‘VAT Refunds from HM (VAT-registered buyers from the UK are followed and Sotheby’s will not be able
only, Sotheby’s is not usually treated as an Revenue and Customs’ for information on should note that the invoice issued by to issue any refunds where the export
agent and most property is sold as if it is the how to recover VAT incurred on the buyer’s Sotheby’s for these items is not suitable documents do not exactly comply with their
property of Sotheby’s. premium.) evidence in respect of import VAT.) regulations. Property subject to temporary
importation must be transferred to another
In the following paragraphs, reference 4. PROPERTY WITH A α SYMBOL On request, immediately after sale, the Customs procedure immediately if any
to VAT symbols shall mean those symbols Items sold to buyers whose address is in the Temporary Admission Department can restoration or repair work is to be carried
located beside the lot number or the EU will be assumed to be remaining in the either ask HM Revenue and Customs to out.
pre-sale estimates in the catalogue (or EU. The property will be invoiced as if it had generate a C79 certificate (for UK buyers),
amending sale room notice). or obtain a copy of the import C88 (for • buyers carrying their own property must
a # symbol (see ‘Property with a # symbol’ other EU VAT registered buyers), which obtain hand-carry papers from the Shipping
1. PROPERTY WITH NO VAT SYMBOL above). However, if the property is to be may be used to claim recovery of the VAT. Department for which a charge of £30 will
exported from the EU, Sotheby’s will re-
Where there is no VAT symbol the property invoice the property under the normal VAT Otherwise Sotheby’s may re-invoice the lot be made. The VAT refund will be processed
is free from VAT and Sotheby’s will not rules (see ‘Property sold with a † symbol’ as if it had been sold with a † symbol and once the appropriate paperwork has been
charge VAT on either the hammer price or above) as requested by the seller. charge VAT at the standard rate on both the returned to Sotheby’s.
the buyer’s premium. hammer price and premium and provide a • Sotheby’s is not able to cancel or refund
Items sold to buyers whose address tax invoice to the buyer. This may enable a any VAT charged on sales made to UK or EU
2. PROPERTY WITH A # SYMBOL is outside the EU will be assumed to be buyer who is VAT registered elsewhere in the private residents unless the lot is subject to
Although these items are not free from VAT, exported from the EU. The property will be EU to avoid payment of VAT in the United temporary importation and the property is
Kingdom. Re-invoicing in this way may
Sotheby’s is able to use the Auctioneer’s invoiced under the normal VAT rules (see make the lot ineligible to be re-sold using the exported from the EU within three months
Margin Scheme and VAT will not normally ‘Property sold with a † symbol’ above). margin scheme. of the date of sale.
be charged on the hammer price. Although the hammer price will be subject
to VAT this will be cancelled or refunded • any refund of VAT is subject to a minimum
Sotheby’s must bear VAT on the buyer’s upon export - see ‘Exports from the 6. EXPORTS FROM THE of £50 per shipment and a processing
EUROPEAN UNION
premium and hence will charge an amount European Union’. The buyer’s premium will charge of £20.
in lieu of VAT at the standard rate on this always attract VAT. However, buyers who The following types of VAT may be cancelled Buyers intending to export, repair, restore
premium. This amount will form part of the are not intending to export their property or refunded by Sotheby’s on exports made or alter lots under temporary importation
buyer’s premium on our invoice and will not from the EU should notify our Client within three months of the sale date if strict († or Ω symbols) should notify the Shipping
be separately identified. Accounts Department on the day of the sale conditions are met: Department before collection. Failure to do
Please see ‘Exports from the European and the property will be re-invoiced showing • the amount in lieu of VAT charged on so may result in the import VAT becoming
Union’ for the conditions to be fulfilled no VAT on the hammer price (see ‘Property buyer’s premium for property sold under payable immediately and Sotheby’s being
before the amount in lieu of VAT in the sold with a # symbol’ above). the margin scheme i.e. with a # symbol or a unable to refund the VAT charged on
buyer’s premium may be cancelled or 5. PROPERTY SOLD WITH α symbol. deposit.
refunded. A ‡ OR Ω SYMBOL • the VAT on the hammer price for property 7. VAT REFUNDS FROM HM
(VAT-registered buyers from within the These items have been imported from sold under the normal VAT rules i.e. with a † REVENUE AND CUSTOMS
European Union (EU) should note that the outside the European Union (EU) to be sold symbol or a α symbol. Where VAT charged cannot be cancelled or
amount in lieu of VAT contained within the at auction under temporary importation. • the import VAT charged on the hammer refunded by Sotheby’s, it may be possible
buyer’s premium cannot be cancelled or When Sotheby’s releases such property to price and VAT on the buyer’s premium for to seek repayment from HM Revenue and
refunded by Sotheby’s or HM Revenue and buyers in the UK, the buyer will become the property sold under temporary importation Customs. Repayments in this manner are
Customs.) importer and must pay Sotheby’s import i.e. with a ‡ or a Ω symbol. limited to businesses located outside the UK
Buyers from within the EU requiring VAT at the following rates on the hammer In each of the above examples, where the and may be considered for
an invoice under the normal VAT rules, price: appropriate conditions are satisfied, no • VAT charged on buyer’s premium on
instead of a margin scheme invoice, should ‡ - the reduced rate VAT will be charged if, at or before the time property sold under the normal VAT rules
notify the Post Sale Service Group or the Ω - the standard rate of invoicing, the buyer instructs Sotheby’s (i.e. with a † or α symbol) or
Client Accounts Department on the day to export the property from the EU. If such
of the auction and an invoice with VAT on You should also note that the appropriate instruction is received after payment, a • import VAT charged on the hammer price
the hammer price will be raised. Buyers rate will be that in force at the date of refund of the VAT amount will be made. If and buyer’s premium for lots sold under
requiring reinvoicing under the normal collection from Sotheby’s and not that in a buyer later decides not to use Sotheby’s temporary importation (i.e. with a ‡ or Ω
VAT rules subsequent to a margin scheme force at the date of sale. shipping services a revised invoice will be symbol).
invoice having been raised should contact These lots will be invoiced under the raised charging VAT. Claim forms are available from:
the Client Accounts Department for auctioneers margin scheme. Sotheby’s
assistance.) must bear VAT on the buyer’s premium HM Revenue and Customs
IMPORTANT CHINESE ART 189