Page 143 - Sotheby's London Fine Japanese Art Nov. 2019

a pre-lot announcement will be made the “VAT INFORMATION FOR BUYERS” countries may have the VAT cancelled or or obtain a copy of the import C88 (for
indicating that interested parties may be printed below. refunded if they provide Sotheby’s with other EU VAT registered buyers), which
bidding on the lot. their VAT registration number and evi- may be used to claim recovery of the VAT.
□ No Reserve VAT AND OTHER TAX dence that the property has been removed Otherwise Sotheby’s may re-invoice the
from the UK within three months of the
lot as if it had been sold with a ‡ symbol
Unless indicated by a box (□), all lots in- INFORMATION FOR BUYERS date of sale. The evidence of removal and charge VAT at the standard rate on
cluded in this sale are offered subject to a required is a certificate of shipment or, both the hammer price and premium and
reserve. A reserve is the confidential ham- The following paragraphs are intended to if the lots were carried by hand, proof of provide a tax invoice to the buyer. This
mer price established between Sotheby’s give general guidance to buyers on the VAT travel and completion of a form available may enable a buyer who is VAT registered
and the seller and below which a lot will not and certain other potential tax implica- from the Post Sale Service Group. elsewhere in the EU to avoid payment of
be sold. The reserve is generally set at a tions of purchasing property at Sotheby’s. VAT in the United Kingdom. Re-invoicing in
percentage of the low estimate and will not The information concerns the most usual 3. PROPERTY WITH A α SYMBOL this way may make the lot ineligible to be
exceed the low estimate for the lot. If any circumstances and is not intended to be re-sold using the margin scheme.
lots included in this sale are offered with- complete. In all cases the relevant tax Items sold to buyers whose address is in
out a reserve, these lots are indicated by a legislation takes precedence and the VAT the EU will be assumed to be remaining Sotheby’s will transfer all lots sold subject
box (□). If all lots included in this sale are rates in effect on the day of the live auction in the EU. The property will be invoiced to Temporary Admission to its Customs
offered without a reserve, a Special Notice will be the rates charged except for lots as if it had no VAT symbol (see ‘Property warehouse immediately after sale.
will be included to this effect and the box sold subject to Temporary Admission for with no VAT symbol’ above). However, if
symbol will not be used for each lot. which the applicable rate will be that in the property is to be exported from the 5. EXPORTS FROM THE EUROPEAN
force at the time of collection. It should EU, Sotheby’s will re-invoice the property UNION
⊕ Property Subject to the Artist’s Resale be noted that, for VAT purposes only, under the normal VAT rules (see ‘Property
Right Sotheby’s is not usually treated as an sold with a ‡ symbol’ above) as requested The following amounts of VAT may be
Purchase of lots marked with this symbol agent and most property is sold as if it is by the seller. cancelled or refunded provided Sotheby’s
(⊕) will be subject to payment of the Art- the property of Sotheby’s. receive the appropriate export documents
ist’s Resale Right, at a percentage of the Items sold to buyers whose address is out- within the time limits stated:
hammer price calculated as follows: In the following paragraphs, reference to side the EU will be assumed to be exported Property with no VAT symbol (see para-
VAT symbols shall mean those symbols from the EU. The property will be invoiced
Portion of the hammer price (in €) located beside the lot number or the under the normal VAT rules (see ‘Property graph 1)
Royalty Rate pre-sale estimates in the cataloguing (or sold with a ‡ symbol’ above). Although the The amount in lieu of VAT charged on
From 0 to 50,000 4% amending sale room notice). hammer price will be subject to VAT this Buyer’s Premium may be refunded
From 50,000.01 to 200,000 3% will be cancelled or refunded upon export provided the purchaser resides outside of
From 200,000.01 to 350,000 1% 1. PROPERTY WITH NO VAT SYMBOL - see ‘Exports from the European Union’. the United Kingdom and the property is
From 350,000.01 to 500,000 0.5% However, buyers who are not intending to exported from the EU within 3 months of
Exceeding 500,000 0.25% Where there is no VAT symbol, Sotheby’s the sale. Sotheby’s must be provided with
is able to use the Auctioneer’s Margin export their property from the EU should the appropriate proof of export immedi-
The Artist’s Resale Right payable will be Scheme and VAT will not normally be notify our Client Accounts Department on ately after export of the goods.
the aggregate of the amounts payable charged on the hammer price. the day of the sale and the property will be
under the above rate bands, subject to a re-invoiced showing no VAT on the ham- Property with a ‡ symbol
maximum royalty payable of 12,500 euros Sotheby’s must bear VAT on the buyer’s mer price (see ‘Property sold with no VAT The VAT charged upon the hammer price
for any single work each time it is sold. The premium and hence will charge an amount symbol’ above). may be refunded provided the purchaser
maximum royalty payable of 12,500 euros in lieu of VAT at the standard rate on this resides outside of the United Kingdom
applies to works sold for 2 million euros premium. This amount will form part of 4. PROPERTY SOLD WITH A ‡ OR Ω and the property is exported from the EU
and above. Calculation of the artist’s resale the buyer’s premium on our invoice and SYMBOL within 3 months of the sale. Sotheby’s
right will be based on the pound sterling will not be separately identified. A limited These items have been imported from must be provided with the appropriate
/ Euro reference exchange rate quoted range of goods, including most books, are outside the EU to be sold at auction under proof of export immediately after export
on the date of the sale by the European not liable to VAT and therefore no amount Temporary Admission. When Sotheby’s of the goods.
Central Bank. in lieu of VAT will be added to the premium. releases such property to buyers in the Property with a ‡ or a Ω symbol
Please see ‘Exports from the European UK, the buyer will become the importer
◉ Restricted Materials The Temporary Admission VAT charged on
Lots with this symbol have been identified Union’ for the conditions to be fulfilled and must pay Sotheby’s import VAT at the the hammer price may be refunded under
at the time of cataloguing as containing before the amount in lieu of VAT on the following rates on the hammer price: the following circumstances:-
organic material which may be subject to buyer’s premium may be cancelled or ‡ - the reduced rate • Sotheby’s is instructed to ship the
restrictions regarding import or export. refunded. Ω - the standard rate property to a place outside the EU
The information is made available for the (VAT-registered buyers from within the You should also note that the appropriate
convenience of Buyers and the absence of European Union (EU) should note that the rate will be that in force on the date of • The property is hand carried from the
the Symbol is not a warranty that there are amount in lieu of VAT contained within the collection of the property from Sotheby’s UK directly outside the EU and Sotheby’s
no restrictions regarding import or export buyer’s premium cannot be cancelled or and not that in force at the date of the sale. pre lodge the export entry with HMRC
of the Lot; Bidders should refer to Condi- refunded by Sotheby’s or HM Revenue and • The VAT liability is transferred to your
tion 11 of the Conditions of Business for Customs.) These lots will be invoiced under the mar- shipper’s own Temporary Admission or
Buyers. Please also refer to the section on gin scheme. Sotheby’s must bear VAT on Customs Warehouse arrangement prior to
Endangered Species in the Buying at Auc- Buyers requiring an invoice under the nor- the buyer’s premium and hence will charge collection from Sotheby’s.
tion Guide. As indicated in the Endangered mal VAT rules, instead of a margin scheme an amount in lieu of VAT at the standard
Species section, Sotheby’s is not able to invoice, should notify the Post Sale Service rate on this premium. This amount will Under all other circumstances Sotheby’s
assist buyers with the shipment of any lots Group or the Client Accounts Depart- form part of the buyer’s premium on is required to complete the importation
with this symbol into the US. A buyer’s in- ment on the day of the live auction and an our invoice and will not be separately and pay the VAT due to HM Revenue and
ability to export or import any lots with this invoice with VAT on the hammer price will identified. Customs prior to the property leaving its
symbol cannot justify a delay in payment be raised. Buyers requiring re-invoicing (VAT-registered buyers from the EU premises and so a VAT refund will not be
or a sale’s cancellation. under the normal VAT rules subsequent should note that the import VAT charged possible.
to a margin scheme invoice having been
∏ Monumental raised should contact the Client Accounts on property released in the UK cannot be Proof of export required
Lots with this symbol may, in our opinion, Department for assistance. cancelled or refunded by Sotheby’s, how- • for lots sold under the margin scheme
require special handling or shipping ever you may be able to seek repayment) (no VAT symbol) or the normal VAT rules
services due to size or other physical con- 2. PROPERTY WITH A † SYMBOL by applying to HM Revenue and Customs (‡ symbol), Sotheby’s is provided with
siderations. Buyers are advised to inspect These items will be sold under the normal - see ‘VAT Refunds from HM Revenue and appropriate documentary proof of export
the lot and to contact Sotheby’s prior to UK VAT rules and VAT will be charged at Customs’) from the EU. Buyers carrying their own
the sale to discuss any specific shipping the standard rate on both the hammer (VAT-registered buyers from the UK should property should obtain hand-carry papers
requirements. note that the invoice issued by Sotheby’s
price and buyer’s premium. from the Shipping department to facilitate
Please refer to VAT information for Buyers Please see ‘Exports from the European for these items is not suitable evidence in this process.
for VAT symbols used in this sale. Value Union’ for the conditions to be fulfilled respect of import VAT.) • for lots sold under Temporary Admission
Added Tax (VAT) may be payable on before the VAT charged on the hammer On request, immediately after sale, the (‡ or Ω symbols), and subsequently trans-
the hammer price and/or the buyer’s price may be cancelled or refunded. Temporary Admission Department can ferred to Sotheby’s Customs Warehouse
premium. Buyer’s premium may attract a either ask HM Revenue and Customs to (into Bond). The property must be shipped
charge in lieu of VAT. Please read carefully (VAT-registered buyers from other EU generate a C79 certificate (for UK buyers), as described above in the paragraph
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