VAT on Art Sales

[Touronaut]

Hi guys I hope you can help..

I have joined forces with an artist, the agreement is I pay the artist £500 I then give the artwork to a gallery for £2000 sale or return. The gallery will then sell on the artwork for £4000 and then my £1500 profit is shared between the artist & myself. This means the gallery has £2000 I have £750 & the artist ends up with £1250. All these prices are inclusive of VAT can anybody please explain how the VAT system would work on this?

Cheers

 

[StevensOnln1]

How the VAT works would depend on whether you, the artist and the gallery are all registered for VAT and if anyone is acting as an agent.

 

[Banksbroo]

There are specific VAT schemes for artists, galleries and dealers who are VAT registered. Have a look over at the HMRC web site.

 

[Jeremiah@RHJ Accountants]

How the VAT works would depend on whether you, the artist and the gallery are all registered for VAT and if anyone is acting as an agent.

Agree with this

Also have a look at this from HMRC website link below

http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

It would be best you seek professional advice from an accountant who you can have a meeting with.