Page 171 - Important Chinese Art, Sotheby's London May 15 2019

require special handling or shipping Department for assistance. should note that the import VAT charged property leaving its premises and so a VAT
services due to size or other physical on property released in the UK cannot refund will not be possible.
considerations. Buyers are advised to 2. PROPERTY WITH A † SYMBOL be cancelled or refunded by Sotheby’s, Proof of export required
inspect the lot and to contact Sotheby’s These items will be sold under the normal however you may be able to seek
prior to the sale to discuss any specific UK VAT rules and VAT will be charged at repayment) by applying to HM Revenue • for lots sold under the margin scheme
shipping requirements. the standard rate on both the hammer and Customs - see ‘VAT Refunds from HM (no VAT symbol) or the normal VAT rules
Please refer to VAT information for price and buyer’s premium. Revenue and Customs’) († symbol), Sotheby’s is provided with
appropriate documentary proof of export
Buyers for VAT symbols used in this Please see ‘Exports from the European (VAT-registered buyers from the UK from the EU. Buyers carrying their own
catalogue. Value Added Tax (VAT) may be Union’ for the conditions to be fulfilled should note that the invoice issued by property should obtain hand-carry papers
payable on the hammer price and/or the before the VAT charged on the hammer Sotheby’s for these items is not suitable from the Shipping department to facilitate
buyer’s premium. Buyer’s premium may price may be cancelled or refunded. evidence in respect of import VAT.) this process.
attract a charge in lieu of VAT. Please read On request, immediately after sale, the
carefully the “VAT INFORMATION FOR (VAT-registered buyers from other EU Temporary Admission Department can • for lots sold under Temporary
BUYERS” printed in this catalogue. countries may have the VAT cancelled Admission (‡ or Ω symbols), and
or refunded if they provide Sotheby’s either ask HM Revenue and Customs to subsequently transferred to Sotheby’s
with their VAT registration number and generate a C79 certificate (for UK buyers), Customs Warehouse (into Bond). The
VAT AND OTHER TAX evidence that the property has been or obtain a copy of the import C88 (for property must be shipped as described
other EU VAT registered buyers), which
INFORMATION FOR BUYERS removed from the UK within three above in the paragraph headed Property
months of the date of sale. The evidence may be used to claim recovery of the VAT. with a ‡ or a Ω symbol.
The following paragraphs are intended of removal required is a certificate of Otherwise Sotheby’s may re-invoice the
to give general guidance to buyers on shipment or, if the lots were carried by lot as if it had been sold with a † symbol • buyers carrying their own property
the VAT and certain other potential tax hand, proof of travel and completion of a and charge VAT at the standard rate on must obtain hand-carry papers from the
implications of purchasing property at form available from the Post Sale Service both the hammer price and premium and Shipping Department for which a small
Sotheby’s. The information concerns Group. provide a tax invoice to the buyer. This administrative charge will be made. The
the most usual circumstances and is not may enable a buyer who is VAT registered VAT refund will be processed once the
intended to be complete. In all cases the 3. PROPERTY WITH A α SYMBOL elsewhere in the EU to avoid payment of appropriate paperwork has been returned
relevant tax legislation takes precedence Items sold to buyers whose address is in VAT in the United Kingdom. Re-invoicing in to Sotheby’s.
and the VAT rates in effect on the day the EU will be assumed to be remaining this way may make the lot ineligible to be • Sotheby’s is not able to cancel or refund
of the auction will be the rates charged in the EU. The property will be invoiced re-sold using the margin scheme. any VAT charged on sales made to UK
except for lots sold subject to Temporary as if it had no VAT symbol (see ‘Property Sotheby’s will transfer all lots sold or EU private residents unless the lot is
Admission for which the applicable with no VAT symbol’ above). However, if subject to Temporary Admission to its subject to Temporary Admission and the
rate will be that in force at the time of the property is to be exported from the Customs warehouse immediately after property is exported from the EU and
collection. It should be noted that, for VAT EU, Sotheby’s will re-invoice the property sale. the requisite export papers provided to
purposes only, Sotheby’s is not usually under the normal VAT rules (see ‘Property Sotheby’s within one month of collection
treated as an agent and most property is sold with a † symbol’ above) as requested 5. EXPORTS FROM THE of the property.
sold as if it is the property of Sotheby’s. by the seller. EUROPEAN UNION
In the following paragraphs, reference Items sold to buyers whose address The following amounts of VAT may be • Sotheby’s is not able to cancel or refund
any VAT charged on sales to UK or EU
to VAT symbols shall mean those symbols is outside the EU will be assumed to be cancelled or refunded provided Sotheby’s private residents unless the lot is subject
located beside the lot number or the exported from the EU. The property will receive the appropriate export documents to Temporary Admission and is shipped as
pre-sale estimates in the catalogue (or be invoiced under the normal VAT rules within the time limits stated: described above.
amending sale room notice). (see ‘Property sold with a † symbol’ Property with no VAT symbol (see
above). Although the hammer price will paragraph 1) Buyers intending to export, repair,
1. PROPERTY WITH NO VAT SYMBOL restore or alter lots sold under Temporary
be subject to VAT this will be cancelled The amount in lieu of VAT charged on
Where there is no VAT symbol, Sotheby’s or refunded upon export - see ‘Exports Buyer’s Premium may be refunded Admission (‡ or Ω symbols) and therefore
is able to use the Auctioneer’s Margin from the European Union’. However, provided the purchaser resides outside transferred to Customs Warehouse
Scheme and VAT will not normally be buyers who are not intending to export of the United Kingdom and the property after sale should notify the Shipping
charged on the hammer price. their property from the EU should notify is exported from the EU within 3 months Department before collection. Failure
our Client Accounts Department on the of the sale. Sotheby’s must be provided to do so may result in the import VAT
Sotheby’s must bear VAT on the becoming payable immediately and
buyer’s premium and hence will charge an day of the sale and the property will be re- with the appropriate proof of export Sotheby’s being unable to refund the VAT
amount in lieu of VAT at the standard rate invoiced showing no VAT on the hammer immediately after export of the goods. charged on deposit.
on this premium. This amount will form price (see ‘Property sold with no VAT Property with a † symbol
part of the buyer’s premium on our invoice symbol’ above). The VAT charged upon the hammer price 6. VAT REFUNDS FROM HM
and will not be separately identified. A 4. PROPERTY SOLD WITH may be refunded provided the purchaser REVENUE AND CUSTOMS
limited range of goods, including most A ‡ OR Ω SYMBOL resides outside of the United Kingdom Where VAT charged cannot be cancelled
books, are not liable to VAT and therefore and the property is exported from the EU or refunded by Sotheby’s, it may be
no amount in lieu of VAT will be added to These items have been imported from within 3 months of the sale. Sotheby’s possible to seek repayment from HM
the premium. outside the EU to be sold at auction under must be provided with the appropriate Revenue and Customs. Repayments in
Temporary Admission. When Sotheby’s
Please see ‘Exports from the European releases such property to buyers in the proof of export immediately after export this manner are limited to businesses
Union’ for the conditions to be fulfilled UK, the buyer will become the importer of the goods. located outside the UK.
before the amount in lieu of VAT on the and must pay Sotheby’s import VAT at the Property with a ‡ or a Ω symbol Claim forms are available from:
buyer’s premium may be cancelled or following rates on the hammer price: The Temporary Admission VAT charged on HM Revenue and Customs
refunded. ‡ - the reduced rate the hammer price may be refunded under VAT Overseas Repayments Unit
Ω - the standard rate the following circumstances:- PO Box 34, Foyle House
(VAT-registered buyers from within the
European Union (EU) should note that You should also note that the • Sotheby’s is instructed to ship the Duncreggan Road, Londonderry
the amount in lieu of VAT contained within appropriate rate will be that in force on property to a place outside the EU Northern Ireland, BT48 7AE
the buyer’s premium cannot be cancelled the date of collection of the property Tel: +44 (0)2871 305100
or refunded by Sotheby’s or HM Revenue from Sotheby’s and not that in force at • The property is hand carried from the Fax: +44 (0)2871 305101
and Customs.) the date of the sale. UK directly outside the EU and Sotheby’s enq.oru.ni@hmrc.gsi.gov.uk
pre lodge the export entry with HMRC
Buyers requiring an invoice under the These lots will be invoiced under the 7. SALES AND USE TAXES
normal VAT rules, instead of a margin margin scheme. Sotheby’s must bear • The VAT liability is transferred to your Buyers should note that local sales taxes
scheme invoice, should notify the Post VAT on the buyer’s premium and hence shipper’s own Temporary Admission or or use taxes may become payable upon
Sale Service Group or the Client Accounts will charge an amount in lieu of VAT at Customs Warehouse arrangement prior to import of items following purchase (for
Department on the day of the auction and the standard rate on this premium. This collection from Sotheby’s example, use tax may be due when
an invoice with VAT on the hammer price amount will form part of the buyer’s Under all other circumstances purchased items are imported into certain
will be raised. Buyers requiring reinvoicing premium on our invoice and will not be Sotheby’s is required to complete the states in the US). Buyers should obtain
under the normal VAT rules subsequent separately identified. importation and pay the VAT due to their own advice in this regard.
to a margin scheme invoice having been HM Revenue and Customs prior to the
raised should contact the Client Accounts (VAT-registered buyers from the EU In the event that Sotheby’s ships items
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