From January 1, 2025: VAT rate for galleries drops to 7%
Federal Council gives final approval to annual tax law
art KARLSRUHE 2025: First art fair with 7% VAT for artworks
Karlsruhe, 22.11.2024 – From January 1, 2025, the VAT rate for artworks will be reduced from 19% to 7%. After the decision was made in June of this year as part of the annual tax law 2024, the Federal Council finally passed the law today, Friday, November 22, 2024. art KARLSRUHE, which will take place from February 20 to 23, 2025, will be the first art fair in Germany to apply the new reduced VAT rate. In his role as Chairman of the Federal Association of German Galleries and Art Dealers (BVDG), art KARLSRUHE Advisory Board Chairman Kristian Jarmuschek has been campaigning for the introduction of this reduced tax rate for years. “I am delighted that our long-standing efforts have now resulted in a change in the law that will hopefully give the German art market the long-awaited new impetus,” says Jarmuschek. Olga Blaß, Project Director of art KARLSRUHE, adds: “As the first German art fair at which the reduced tax rate will apply, we hope that this important development will bring new, positive impulses that will be noticeable at art KARLSRUHE.”
The change in the law is a significant relief for the German art market and strengthens the competitiveness of galleries and art dealers, who have suffered from the higher tax burden over the past ten years. Since the VAT rate was increased to 19% in 2014, galleries and art dealers in Germany have been at a disadvantage compared to international competitors with mostly lower VAT rates. They are now hoping for a significant strengthening of the German art market and greater competitiveness and presence in an international context.
About art KARLSRUHE 2025
With its 22nd edition, art KARLSRUHE, the fair for classical modern and contemporary art, will once again invite the international art world to the fan-shaped city next year. From February 20 to 23, around 180 exhibitors will span 120 years of art history, creating an exchange between classical modernism, art after 1945, contemporary and contemporary art and sculpture. With an outstanding selection of works, art KARLSRUHE presents diverse artistic perspectives that appeal to both established collectors and art novices.
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