Dáil Éireann debate -
Tuesday, 19 Feb 1991

Vol. 405 No. 3

Written Answers. - VAT on Art Works.

Brendan Howlin

Question:

30 Mr. Howlin asked the Minister for Finance if his attention has been drawn to the fact that art works of Irish origin or creation, purchased abroad and within the EC and re-imported into Ireland are subject to VAT at the point of entry at 10 per cent, even though as second-hand goods, they would have attracted VAT elsewhere; if he will make provisions for the exemption of works of cultural importance and significance so as to encourage the repatriation of Ireland's cultural heritage; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

In accordance with EC law, VAT is chargeable on works of art at point of entry, although purchases by approved museums and galleries where the items are not intended for sale and are bought from non-taxable persons, are relieved from the tax. EC law does not allow a distinction to be drawn accordingly to the country of origin of the work.

An exemption for works of art in an individual member state, by way of derogation to existing Community law, would be unlikely to obtain Community approval in present circumstances.

It is not correct to assume that all works of art being imported or re-imported into Ireland would already have borne VAT in another country. This would depend on many circumstances, for example, the origin of the goods, the status of the vendor, whether an auctioneer is involved in the sale and the particular tax regime applicable in the country where the goods are sold. A large proportion of works of art imported into Ireland come from the United Kingdom and would be sold there by private individuals through auctions. In these circumstances, the only VAT charged is on the auctioneer's commission: the goods themselves do not attract UK VAT.