Page 143 - Christie's Chinese Works of Art St. George November 2018 London

is not intended to be complete. In all cases hand, proof of travel and completion of a ineligible to be re-sold using the margin original import papers from our Shipping
the relevant tax legislation takes precedence form available from the Post Sale Service scheme. Sotheby’s will transfer all lots Department. HM Revenue and Customs
and the VAT rates in effect on the day of Group. sold subject to Temporary Admission to its insist that the correct Customs procedures
the auction will be the rates charged. It Custom warehouse immediately after sale. are followed and Sotheby’s will not be able
(All business buyers from outside the
should be noted that, for VAT purposes UK should refer to ‘VAT Refunds from HM (VAT-registered buyers from the UK to issue any refunds where the export
only, Sotheby’s is not usually treated as an documents do not exactly comply with their
agent and most property is sold as if it is the Revenue and Customs’ for information on should note that the invoice issued by regulations. Property subject to temporary
Sotheby’s for these items is not suitable
how to recover VAT incurred on the buyer’s
property of Sotheby’s. importation must be transferred to another
premium.) evidence in respect of import VAT.)
In the following paragraphs, reference On request, immediately after sale, the Customs procedure immediately if any
restoration or repair work is to be carried
to VAT symbols shall mean those symbols 4. PROPERTY WITH A α SYMBOL Temporary Admission Department can out.
located beside the lot number or the Items sold to buyers whose address is in the either ask HM Revenue and Customs to
pre-sale estimates in the catalogue (or EU will be assumed to be remaining in the generate a C79 certificate (for UK buyers), • buyers carrying their own property must
amending sale room notice). EU. The property will be invoiced as if it had or obtain a copy of the import C88 (for obtain hand-carry papers from the Shipping
a # symbol (see ‘Property with a # symbol’ Department for which a charge of £30 will
1. PROPERTY WITH NO VAT SYMBOL other EU VAT registered buyers), which
above). However, if the property is to be may be used to claim recovery of the VAT. be made. The VAT refund will be processed
Where there is no VAT symbol the property exported from the EU, Sotheby’s will re- Otherwise Sotheby’s may re-invoice the lot once the appropriate paperwork has been
is free from VAT and Sotheby’s will not invoice the property under the normal VAT as if it had been sold with a † symbol and returned to Sotheby’s.
charge VAT on either the hammer price or rules (see ‘Property sold with a † symbol’ charge VAT at the standard rate on both the • Sotheby’s is not able to cancel or refund
the buyer’s premium. above) as requested by the seller. hammer price and premium and provide a any VAT charged on sales made to UK or EU
2. PROPERTY WITH A # SYMBOL Items sold to buyers whose address tax invoice to the buyer. This may enable a private residents unless the lot is subject to
is outside the EU will be assumed to be buyer who is VAT registered elsewhere in the temporary importation and the property is
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 exported from the EU within three months
Sotheby’s is able to use the Auctioneer’s invoiced under the normal VAT rules (see Kingdom. Re-invoicing in this way may of the date of sale.
Margin Scheme and VAT will not normally ‘Property sold with a † symbol’ above). make the lot ineligible to be re-sold using the
be charged on the hammer price. Although the hammer price will be subject margin scheme. • any refund of VAT is subject to a minimum
of £50 per shipment and a processing
Sotheby’s must bear VAT on the buyer’s to VAT this will be cancelled or refunded 6. EXPORTS FROM THE charge of £20.
premium and hence will charge an amount upon export - see ‘Exports from the EUROPEAN UNION
in lieu of VAT at the standard rate on this European Union’. The buyer’s premium will Buyers intending to export, repair, restore
premium. This amount will form part of the always attract VAT. However, buyers who The following types of VAT may be cancelled or alter lots under temporary importation
buyer’s premium on our invoice and will not are not intending to export their property or refunded by Sotheby’s on exports made († or Ω symbols) should notify the Shipping
be separately identified. from the EU should notify our Client within three months of the sale date if strict Department before collection. Failure to do
Accounts Department on the day of the sale conditions are met: so may result in the import VAT becoming
Please see ‘Exports from the European and the property will be re-invoiced showing payable immediately and Sotheby’s being
Union’ for the conditions to be fulfilled no VAT on the hammer price (see ‘Property • the amount in lieu of VAT charged on unable to refund the VAT charged on
before the amount in lieu of VAT in the sold with a # symbol’ above). buyer’s premium for property sold under deposit.
buyer’s premium may be cancelled or the margin scheme i.e. with a # symbol or a
refunded. 5. PROPERTY SOLD WITH α symbol. 7. VAT REFUNDS FROM HM
A ‡ OR Ω SYMBOL REVENUE AND CUSTOMS
(VAT-registered buyers from within the • the VAT on the hammer price for property
European Union (EU) should note that the These items have been imported from sold under the normal VAT rules i.e. with a † Where VAT charged cannot be cancelled or
amount in lieu of VAT contained within the outside the European Union (EU) to be sold symbol or a α symbol. refunded by Sotheby’s, it may be possible
buyer’s premium cannot be cancelled or at auction under temporary importation. • the import VAT charged on the hammer to seek repayment from HM Revenue and
refunded by Sotheby’s or HM Revenue and When Sotheby’s releases such property to price and VAT on the buyer’s premium for Customs. Repayments in this manner are
Customs.) buyers in the UK, the buyer will become the property sold under temporary importation limited to businesses located outside the UK
importer and must pay Sotheby’s import i.e. with a ‡ or a Ω symbol. and may be considered for
Buyers from within the EU requiring VAT at the following rates on the hammer
an invoice under the normal VAT rules, price: In each of the above examples, where the • VAT charged on buyer’s premium on
instead of a margin scheme invoice, should appropriate conditions are satisfied, no property sold under the normal VAT rules
notify the Post Sale Service Group or the ‡ - the reduced rate VAT will be charged if, at or before the time (i.e. with a † or α symbol) or
Client Accounts Department on the day Ω - the standard rate of invoicing, the buyer instructs Sotheby’s • import VAT charged on the hammer price
of the auction and an invoice with VAT on You should also note that the appropriate to export the property from the EU. If such and buyer’s premium for lots sold under
the hammer price will be raised. Buyers rate will be that in force at the date of instruction is received after payment, a temporary importation (i.e. with a ‡ or Ω
requiring reinvoicing under the normal collection from Sotheby’s and not that in refund of the VAT amount will be made. If symbol).
VAT rules subsequent to a margin scheme force at the date of sale. a buyer later decides not to use Sotheby’s
invoice having been raised should contact shipping services a revised invoice will be Claim forms are available from:
the Client Accounts Department for These lots will be invoiced under the raised charging VAT. HM Revenue and Customs
assistance.) auctioneers margin scheme. Sotheby’s
must bear VAT on the buyer’s premium Where the buyer carries purchases from VAT Overseas Repayments Unit
3. PROPERTY WITH A † SYMBOL and hence will charge an amount in lieu of the EU personally or uses the services of PO Box 34, Foyle House
These items are standard-rated and will be VAT at the standard rate on this premium. another shipper, Sotheby’s will charge the Duncreggan Road, Londonderry
VAT amount due as a deposit and refund
sold under the normal UK VAT rules. Both This amount will form part of the buyer’s it if the lot has been exported within three
the hammer price and buyer’s premium will premium on our invoice and will not be months of the date of sale and the following Northern Ireland, BT48 7AE
be subject to VAT at the standard rate. separately identified. conditions are met: Tel: +44 (0)2871 305100
Please see ‘Exports from the European (VAT-registered buyers from the EU • for lots sold under the margin scheme Fax: +44 (0)2871 305101
Union’ for the conditions to be fulfilled before should note that the import VAT charged (no VAT symbol) or the normal VAT rules
the VAT charged on the hammer price may on property released in the UK cannot († symbol), Sotheby’s is provided with enq.oru.ni@hmrc.gsi.gov.uk
be cancelled or refunded. Sotheby’s must be cancelled or refunded by Sotheby’s, appropriate documentary proof of export
always charge VAT on the buyer’s premium however you may be able to seek from the EU. Buyers carrying their own 8. SALES AND USE TAXES
for these lots and will neither cancel nor repayment by applying to HM Revenue property should obtain hand-carry papers Buyers should note that local sales
refund the VAT charged. and Customs - see VAT refunds from HM taxes or use taxes may become payable
Revenue and Customs.) from the Shipping department to facilitate
(VAT-registered buyers from other this process. upon import of items following purchase
European Union (EU) countries may have (VAT-registered buyers from the UK • for lots sold under temporary importation (for example, use tax may be due when
the VAT on the hammer price cancelled or should note that the invoice issued by (‡ or Ω symbols), Sotheby’s is provided purchased items are imported into certain
refunded if they provide Sotheby’s with their Sotheby’s for these items is not suitable with a copy of the correct paperwork duly states in the US). Buyers should obtain their
VAT registration number and evidence that evidence in respect of import VAT.) completed and stamped by HM Revenue own advice in this regard.
the property has been removed from the UK This may enable a buyer who is VAT and Customs which show the property has In the event that Sotheby’s ships items for a
within three months of the date of sale. The registered elsewhere in the EU to avoid been exported from the EU via the United purchaser in this sale to a destination within
evidence of removal required is a certificate payment of VAT in the United Kingdom. Kingdom. It is essential for shippers acting a US state in which Sotheby’s is registered
of shipment or, if the lots were carried by Re-invoicing in this way may make the lot on behalf of buyers to collect copies of the to collect sales tax, Sotheby’s is obliged to
ST GEORGE STREET SALE: CHINESE ART 141