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Sylvia Evans

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.A conundrum. I am about to exhibit some paintings in a local gallery attached to a theatre.   There is a 30% commission   And 20% VAT charge.    I am not VAT registered  so don’t understand this charge.   I sell a few pics on occasion but nothing to incur VAT . Any advice appreciated.

AnonymousUser-8 AnonymousUser-8

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Sylvia, I do know a little about this. A friend of mine in Brighton painted a picture of George 111 as a cat in ceremonial robes that they have on display in the Royal Pavilion.  They wanted to turn this into greeting cards to sell and my friend came up with the same problem. It was because they presumed she was self employed selling her art. In this case they wouldn't use the art unless she was because of vat and tax, as its classed as income officially. I think if you sell and vat is involved the people can claim the vat back, which is why it goes through the tax office. Perhaps ask the organisers how it works.  My friends case was different because the Royal Pavilion would sell thousands over the year. She decided not to. Hope that's helpful....if not discard xx

Jenny Harris

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Sylvia, I’ve sold paintings through my local framer in the past and although their commission was 30% of the sale price, they took an extra 20% of that commission (ie a commission of 30% plus 20% of that 30%) to cover their own VAT costs.  

Edited
by Jenny Harris

Sylvia Evans

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Thanks Julie and Jenny.   Seems very un, fair  

AnonymousUser-8 AnonymousUser-8

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Sylvia, what Jenny has just posted sounds more in keeping with your problem. I would  speak to the gallery owner to clarify what it entails. X

Alan Bickley

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It doesn’t matter if you’re vat registered or not. It’s the gallery (or outlet) that is, and they have to charge you, their client. That’s commission plus vat, all galleries work the same way!

Sylvia Evans

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Thanks Alan it sounds unfair….i thought you might have the answer.    Can I claim it back from anywhere ? 

AnonymousUser-8 AnonymousUser-8

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I'm sure Alan will have the answer to that Sylvia, but I would have thought you could as you are not a tax payer. Does seem a bit unfair doesn't it. 

Alan Bickley

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The answer is no unfortunately. You pay vat on some of your groceries and just about everything we buy…clothes, new car etc. The taxman, or vatman cometh, he wants his pound of flesh… The only way you can claw it back is if you are vat registered yourself, as most businesses are.

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by Alan Bickley

AnonymousUser-8 AnonymousUser-8

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Shows how little I know. Seems rather miserable doesn't it  Sylvia.!

Sylvia Evans

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It does Julie. Still don’t understand it Alan.   I am selling not buying.  Whoever buys the pic is including the VAT in their purchase like I do when I buy dog biscuits or gin.   Soooo  the tax grabbers get it twice  from me and the buyer….?stamp,

Edited
by Sylvia Evans

Alan Bickley

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Okay folks… let’s regroup and take stock! What’s happening is the theatre/gallery is vat registered, meaning that their turnover is above the vat threshold!  That’s the law… are you understanding that! So, they are taking a 30% commission from you, that’s Sylvia in this instance. They have to charge vat on top of the 30% commission, that’s also the law, on just the commission and not the full price of the painting. I’m with Artfinder, and they do sell a lot of my work. They take 40% plus vat from each and every sale. Basically, I come away with around half of the sale price… that’s the name of the game, take it or leave it I’m afraid!
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