The German Art Dealers Association Is Calling on the Government to Drop Sales Tax on Art to Mitigate the Market Impact of Coronavirus

The German Association of Galleries and Art Dealers has sent out
a call on the government to lower sales tax on art in order to
alleviate the financial setback from the rapid spread of
coronavirus.

Last Thursday, culture minister Monika Grütters said that there will be
assistance from the federal government to help stabilize companies
in the arts and culture sectors. But the dealer association wants
the government to take things a step further, and is asking for
value-added sales tax to be lowered from 19 percent, the usual rate
on goods and services, to the reduced rate of 7 percent.

Yesterday, Art Cologne announced that it would
postpone the preeminent German fair until September due to the
outbreak of coronavirus and the subsequent lockdowns on public
spaces and travel. Berlin’s museums are being closed from now until
at least April 20, per a directive from the local government.
Galleries across Germany, meanwhile, are calling off
exhibitions.

“The German art market has suffered a severe blow from the
cancellation of Art Cologne in April,” the association said in a
statement. “Galleries are the gatekeepers for artists. They offer
them sustainable positioning in the market and make a significant
contribution to securing artists’ existence at their own economic
risk and through investments, with passion and great personal
commitment.”

In 2014, the government voted to exempt works
of art from the reduced 7 percent tax rate that they previously
enjoyed, causing an uproar within the German art market. The
association of dealers calls that move a “fatal error” in their
statement today, saying it has since led to the “closures of small,
medium-sized and market/strong galleries” in Germany. At the time
of the reversal, dealers lambasted the government, saying that
collectors were just buying works from artists with international
galleries in order to pay a lower price.

In 2018, a newly elected coalition government put the idea back on the
table to return to a 7 percent tax on artworks, but no
further action has yet taken place.

“It is long overdue to end this unequal treatment. In view of
the corona pandemic and the associated slump in sales due to
cancellations, breakdowns, or postponements of art fairs, events,
and exhibitions, there is an additional economic hardship for
galleries,” the association said. “It is necessary to cushion
further dam breaks with unforeseeable consequences for the
galleries.”

The post The German Art Dealers Association Is Calling on
the Government to Drop Sales Tax on Art to Mitigate the Market
Impact of Coronavirus appeared first on artnet News.