Page 149 - Sothebys Important Chinese Art London May 2018

the “VAT INFORMATION FOR BUYERS” that the property has been removed from hammer price and premium and provide to Sotheby’s.
printed in this catalogue. the UK within three months of the date of a tax invoice to the buyer. This may enable • Sotheby’s is not able to cancel or refund
sale. The evidence of removal required a buyer who is VAT registered elsewhere any VAT charged on sales made to UK
is a certiÞ cate of shipment or, if the lots in the EU to avoid payment of VAT in the or EU private residents unless the lot is
VAT AND OTHER TAX were carried by hand, proof of travel and United Kingdom. Re-invoicing in this way subject to Temporary Admission and the
INFORMATION FOR BUYERS completion of a form available from the may make the lot ineligible to be re-sold property is exported from the EU and
Post Sale Service Group. using the margin scheme. the requisite export papers provided to
The following paragraphs are intended to
Sotheby’s will transfer all lots sold Sotheby’s within one month of collection of
give general guidance to buyers on the VAT 3. PROPERTY WITH A ˞ SYMBOL subject to Temporary Admission to its the property.
and certain other potential tax implications
Items sold to buyers whose address is in Customs warehouse immediately after • Sotheby’s is not able to cancel or refund
of purchasing property at Sotheby’s. The the EU will be assumed to be remaining sale. any VAT charged on sales to UK or EU
information concerns the most usual
in the EU. The property will be invoiced private residents unless the lot is subject
circumstances and is not intended to be as if it had no VAT symbol (see ‘Property 5. EXPORTS FROM THE to Temporary Admission and is shipped as
complete. In all cases the relevant tax EUROPEAN UNION
with no VAT symbol’ above). However, if described above.
legislation takes precedence and the VAT the property is to be exported from the The following amounts of VAT may be Buyers intending to export, repair,
rates in e! ect on the day of the auction will
EU, Sotheby’s will re-invoice the property cancelled or refunded provided Sotheby’s restore or alter lots sold under Temporary
be the rates charged except for lots sold under the normal VAT rules (see ‘Property receive the appropriate export documents Admission (಴ or ˖ symbols) and therefore
subject to Temporary Admission for which
sold with a ಳ symbol’ above) as requested within the time limits stated: transferred to Customs Warehouse after
the applicable rate will be that in force at by the seller. sale should notify the Shipping Department
the time of collection. It should be noted Property with no VAT symbol (see
Items sold to buyers whose address before collection. Failure to do so may
that, for VAT purposes only, Sotheby’s is is outside the EU will be assumed to be paragraph 1) result in the import VAT becoming payable
not usually treated as an agent and most The amount in lieu of VAT charged on
exported from the EU. The property will be immediately and Sotheby’s being unable to
property is sold as if it is the property of invoiced under the normal VAT rules (see Buyer’s Premium may be refunded refund the VAT charged on deposit.
Sotheby’s. provided the purchaser resides outside
‘Property sold with a ಳ symbol’ above).
In the following paragraphs, reference of the United Kingdom and the property 6. VAT REFUNDS FROM HM
to VAT symbols shall mean those symbols Although the hammer price will be subject is exported from the EU within 3 months REVENUE AND CUSTOMS
to VAT this will be cancelled or refunded
located beside the lot number or the upon export - see ‘Exports from the of the sale. Sotheby’s must be provided Where VAT charged cannot be cancelled or
pre-sale estimates in the catalogue (or with the appropriate proof of export
European Union’. However, buyers who are refunded by Sotheby’s, it may be possible
amending sale room notice). immediately after export of the goods.
not intending to export their property from to seek repayment from HM Revenue and
1. PROPERTY WITH NO VAT SYMBOL the EU should notify our Client Accounts Property with a ಳ symbol Customs. Repayments in this manner
Department on the day of the sale and the The VAT charged upon the hammer price are limited to businesses located outside
Where there is no VAT symbol, Sotheby’s property will be re-invoiced showing no VAT may be refunded provided the purchaser the UK.
is able to use the Auctioneer’s Margin
on the hammer price (see ‘Property sold resides outside of the United Kingdom
Scheme and VAT will not normally be with no VAT symbol’ above). and the property is exported from the EU Claim forms are available from:
charged on the hammer price. within 3 months of the sale. Sotheby’s HM Revenue and Customs
Sotheby’s must bear VAT on the buyer’s 4. PROPERTY SOLD WITH must be provided with the appropriate VAT Overseas Repayments Unit
premium and hence will charge an amount A ಴ OR ˖ SYMBOL proof of export immediately after export of PO Box 34, Foyle House
in lieu of VAT at the standard rate on this These items have been imported from the goods. Duncreggan Road, Londonderry
premium. This amount will form part of the Northern Ireland, BT48 7AE
outside the EU to be sold at auction under Property with a ಴ or a ˖ symbol Tel: +44 (0)2871 305100
buyer’s premium on our invoice and will not Temporary Admission. When Sotheby’s
be separately identiÞ ed. A limited range of The Temporary Admission VAT charged on Fax: +44 (0)2871 305101
releases such property to buyers in the the hammer price may be refunded under enq.oru.ni@hmrc.gsi.gov.uk
goods, including most books, are not liable UK, the buyer will become the importer
to VAT and therefore no amount in lieu of the following circumstances:-
and must pay Sotheby’s import VAT at the • Sotheby’s is instructed to ship the 7. SALES AND USE TAXES
VAT will be added to the premium. following rates on the hammer price:
Please see ‘Exports from the European property to a place outside the EU Buyers from outside the UK should note
಴ - the reduced rate • The property is hand carried from the UK
Union’ for the conditions to be fulÞ lled ˖ - the standard rate that local sales taxes or use taxes may
before the amount in lieu of VAT on the directly outside the EU and Sotheby’s pre become payable upon import of items
buyer’s premium may be cancelled or You should also note that the appropriate lodge the export entry with HMRC following purchase (for example, the Use
refunded. rate will be that in force on the date of • The VAT liability is transferred to your Tax payable on import of purchased items
(VAT-registered buyers from within the collection of the property from Sotheby’s shipper’s own Temporary Admission or to certain states of the USA). Buyers should
European Union (EU) should note that the and not that in force at the date of the sale. Customs Warehouse arrangement prior to obtain their own advice in this regard.
amount in lieu of VAT contained within the These lots will be invoiced under the collection from Sotheby’s Sotheby’s is registered to collect sales
buyer’s premium cannot be cancelled or margin scheme. Sotheby’s must bear Under all other circumstances tax in the states of New York and California,
refunded by Sotheby’s or HM Revenue and VAT on the buyer’s premium and hence Sotheby’s is required to complete the USA. In the event that Sotheby’s ships
Customs.) will charge an amount in lieu of VAT at importation and pay the VAT due to HM items for a purchaser in this sale to a
Buyers requiring an invoice under the the standard rate on this premium. This Revenue and Customs prior to the property destination within New York State USA, or
normal VAT rules, instead of a margin amount will form part of the buyer’s leaving its premises and so a VAT refund California State USA, Sotheby’s is obliged
scheme invoice, should notify the Post premium on our invoice and will not be will not be possible. to collect the respective state’s sales or
Sale Service Group or the Client Accounts separately identiÞ ed. Proof of export required use tax on the total purchase price and
Department on the day of the auction and (VAT-registered buyers from the EU • for lots sold under the margin scheme shipping costs, including insurance, of such
an invoice with VAT on the hammer price should note that the import VAT charged (no VAT symbol) or the normal VAT rules items, regardless of the country in which
will be raised. Buyers requiring reinvoicing on property released in the UK cannot (ಳ symbol), Sotheby’s is provided with the purchaser resides or is a citizen. Where
under the normal VAT rules subsequent be cancelled or refunded by Sotheby’s, appropriate documentary proof of export the purchaser has provided Sotheby’s with
to a margin scheme invoice having been however you may be able to seek from the EU. Buyers carrying their own a valid Resale Exemption CertiÞ cate prior
raised should contact the Client Accounts repayment) by applying to HM Revenue property should obtain hand-carry papers to the release of the property, sales and use
Department for assistance. and Customs - see ‘VAT Refunds from HM from the Shipping department to facilitate tax will not be charged. Clients to whom
Revenue and Customs’) this process. this tax might apply are advised to contact
2. PROPERTY WITH A ಳ SYMBOL (VAT-registered buyers from the UK • for lots sold under Temporary Admission the Post Sale Manager listed in the front of
should note that the invoice issued by this catalogue before arranging shipping.
These items will be sold under the normal (಴ or ˖ symbols), and subsequently
UK VAT rules and VAT will be charged at the Sotheby’s for these items is not suitable transferred to Sotheby’s Customs
evidence in respect of import VAT.)
standard rate on both the hammer price Warehouse (into Bond). The property
and buyer’s premium. On request, immediately after sale, the must be shipped as described above in the CONDITIONS OF BUSINESS
Temporary Admission Department can FOR BUYERS
Please see ‘Exports from the European paragraph headed Property with a ಴ or a ˖
Union’ for the conditions to be fulÞ lled either ask HM Revenue and Customs to symbol. The nature of the relationship between
generate a C79 certiÞ cate (for UK buyers),
before the VAT charged on the hammer • buyers carrying their own property Sotheby’s, Sellers and Bidders and the
price may be cancelled or refunded. or obtain a copy of the import C88 (for must obtain hand-carry papers from the terms on which Sotheby’s (as auctioneer)
other EU VAT registered buyers), which
(VAT-registered buyers from other EU Shipping Department for which a small and Sellers contract with Bidders are set
countries may have the VAT cancelled or may be used to claim recovery of the VAT. administrative charge will be made. The out below.
Otherwise Sotheby’s may re-invoice the lot
refunded if they provide Sotheby’s with VAT refund will be processed once the Bidders’ attention is speciÞ cally drawn to
their VAT registration number and evidence as if it had been sold with a ಳ symbol and appropriate paperwork has been returned
charge VAT at the standard rate on both the Conditions 3 and 4 below, which require
IMPORTANT CHINESE ART 147