LEMONSTREET GALLERY 24-26 City Quay, Dublin 2, +353 1 671 0244
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TAXATION
Tax
The tax system can be quite generous towards art purchases by commercial organisations.
VALUE ADDED TAX (VAT):
VAT is charged at 13.5% on purchases of art. The commercial or corporate buyer (presuming they are registered for VAT) should request a VAT invoice, which will show a 13.5% charge on the entire purchase price, which is recoverable.
The VAT will of course only be recoverable if the artwork is purchased for the business, for example for the purpose of enhancing client meeting rooms or the general ambience for staff.
CORPORATION TAX/INCOME TAX:
If artworks are purchased for a business they are considered a capital expenditure item for which capital allowances are available at 15% of the purchase price until fully written off for tax purposes.
Capital allowances will only be granted if the artwork is bona fide acquired for the business.
N.B. These notes are for guidance only. Professional advice should be sought.
The tax system can be quite generous towards art purchases by commercial organisations.
VALUE ADDED TAX (VAT):
VAT is charged at 13.5% on purchases of art. The commercial or corporate buyer (presuming they are registered for VAT) should request a VAT invoice, which will show a 13.5% charge on the entire purchase price, which is recoverable.
The VAT will of course only be recoverable if the artwork is purchased for the business, for example for the purpose of enhancing client meeting rooms or the general ambience for staff.
CORPORATION TAX/INCOME TAX:
If artworks are purchased for a business they are considered a capital expenditure item for which capital allowances are available at 15% of the purchase price until fully written off for tax purposes.
Capital allowances will only be granted if the artwork is bona fide acquired for the business.
N.B. These notes are for guidance only. Professional advice should be sought.