Artists selling sculptural ceramics may apply the 10% VAT rate

The nature of the work of art and the way the commercial transaction is carried out determine the applicable tax rate for Value Added Tax (IVA). Recently, the Dirección General de Tributos (DGT) has specified the tax treatment of sculptural ceramic works when they are delivered by their own author.

What the DGT has resolved

The tax administration has confirmed that the deliveries of sculptural ceramic works made by the author can benefit from the reduced tax rate of 10%, provided that these pieces meet the definition of objects of art established in article 136 of Law 37/1992 on IVA.

However, the resolution focuses on the operation when an art gallery intervenes under a consignment regime where it acts in its own name. In this scenario, two simultaneous deliveries of goods occur:

• The delivery from the artist to the gallery: The author issues their invoice applying the reduced rate of 10%. The taxable base for the artist will be the sale price to the final customer minus the gallery commission.
• The delivery from the gallery to the customer: As the gallery acts as a reseller, it must apply the general rate of 21% on its own invoice to the final consumer.

What it means for you

If you are a professional artist dedicated to the creation of sculptural ceramic works, you have the right to invoice your pieces at the 10% rate when you deliver them to intermediaries, provided the work is considered art. This allows for a lower tax burden in the production and initial delivery phase.

On the other hand, if you manage an art gallery and act in your own name (buying the work to later resell it), you cannot pass on the reduced 10% rate to the final customer. Your tax obligation is to apply the general rate of 21% on the sale price, regardless of whether the artist has invoiced you at the reduced rate.

What is advisable to do

It is necessary to verify that the produced ceramic works strictly fit the definition of objects of art according to current regulations to avoid contingencies with the Agencia Tributaria (AEAT). Likewise, artists and galleries must clearly define in their consignment contracts whether the gallery acts on behalf of another or in its own name, as this determines the taxable base and the VAT rate that must be applied at each link in the sales chain.