Virtually all State Sales Tax Laws require a corporation to register with the State’s Tax Authorities and collect and remit sales tax if the corporation either establishes or maintains physical or economic presence within the state. In the states that impose sales tax, Tax Laws require an auction house, with such presence in the state, to register as a sales tax collector, and remit sales tax collected to the state. New York sales tax is charged on the hammer price, Buyer’s premium, overhead premium (as applicable) and any other applicable charges on any property picked up or delivered in New York, regardless of the state or country in which the buyer resides or does business.

2. Where Sotheby’s Collects Sales Tax

Sotheby’s is currently registered to collect sales tax in the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming. For any property collected or received by the buyer in New York City, such property is subject to sales tax at the existing New York State and City rate of 8.875%.

3. Where Sotheby’s Wine Collects Sales Tax

4. Sales Taxes, VAT and other Indirect Taxes on NFTS

Please note that many jurisdictions will consider the sale of NFTs to be the sale of digital property or goods or an Electronically Supplied Service subject to the buyers’ local indirect taxes. Sotheby’s will collect any applicable sales tax, compensating use tax, VAT, consumption tax, goods or services tax or other indirect taxes, luxury tax, excise tax, and duties or tariffs on the purchase of NFTs where and as required by applicable law. In most cases, such determination will be based on the billing address of the Buyer. For the lots that include physical objects associated with them, tax may be collected on those lots based on the physical delivery address and not billing address. Most states that impose sales taxes allow for specified exemptions to the tax. For example, a registered re-seller such as a registered art dealer may purchase without incurring a tax liability, and Sotheby’s is not required to collect sales tax from such re-seller. The art dealer, when re-selling the property, may be required to charge sales tax to its client, or the client may be required to self-assess sales or use tax upon acquiring the property. Sotheby’s is required to request a properly completed resale certificate to document that the purchase is for resale. If you wish to provide a resale certificate for your purchase, please contact our Post Sale Services team. The winning bidders will be provided with a declaration statement, which they will be required to complete to provide us with the billing address, and return to Sotheby’s, along with supporting documentation for that billing address, before an invoice can be issued.

5. Sotheby’s Arranged Shipping

If the property is delivered into any state in which Sotheby’s is registered, Sotheby’s is required by law to collect and remit the appropriate sales tax in effect in the state where the property is delivered.

6. Client Arranged Shipping

If the property is to be shipped by the buyer, the buyer must collect the purchased property in New York and arrange on their own behalf for shipping to such other state. Property collected from our New York premises by a common carrier hired by the buyer for delivery at an address outside of New York is not subject to New York Sales Tax, but if the property is delivered into any state in which we are registered, we are required by law to collect and remit the appropriate sales tax in effect in the state where the property is delivered. New York State recognizes shippers such as the United States Postal Service, United Parcel Service, FedEx, or the like as “common carriers”. If a buyer hires a shipper other than a common carrier to pick up property, we will collect New York sales tax at a rate of 8.875% regardless of the ultimate destination of the goods. If a buyer utilizes a freight-forwarder who is registered with the Transportation Security Administration to deliver property outside of the United States, no sales tax would be due on this transaction.

7. Where We are Not Required to Collect Sales Tax

We are not required to collect sales tax on property delivered to states other than those listed above. If the property is delivered to a state where we are not required to collect sales tax, it is the responsibility of the buyer to self-assess any sales or use tax and remit it to taxing authorities in that state. We are not required to collect sales tax for property delivered to the buyer outside of the United States.

Restoration and Other Services Regardless of where the property is subsequently transported, if any framing or restoration services are performed on the property in New York, it is considered to be a delivery of the property to the buyer in New York, and Sotheby’s will be required to collect the 8.875% New York sales tax.

8. Certain Exemptions

Most states that impose sales taxes allow for specified exemptions to the tax. For example, a registered re-seller such as a registered art dealer may purchase without incurring a tax liability, and Sotheby’s is not required to collect sales tax from such re-seller. The art dealer, when re-selling the property, may be required to charge sales tax to its client, or the client may be required to self-assess sales or use tax upon acquiring the property. Similarly, a registered re-seller such as a registered liquor retailer with state-issued liquor license may purchase without incurring a tax liability, and Sotheby’s Wine is not required to collect sales tax from such re-seller. The liquor retailer, when re-selling the property, must have a liquor license and may be required to charge sales tax to its client, or the client may be required to self-assess sales or use tax upon acquiring the property.

LONDON

1. VAT

Value Added Tax (VAT) may be payable on the hammer price and/or the buyer’s premium and overhead premium (as applicable). Buyer’s premium and overhead premium (as applicable) may attract a charge in lieu of VAT.

The following paragraphs are intended to give general guidance to buyers on the VAT and certain other potential tax implications of purchasing property at Sotheby’s. The information concerns the most usual circumstances and is not intended to be complete. Sotheby’s is unable to provide tax advice to you and recommends you obtain independent tax advice. In all cases the relevant tax legislation takes precedence and the VAT rates in effect on the day of a sale of a Lot will be the rates charged except for lots sold subject to Temporary Admission for which the applicable rate will be that in force at the time of collection. It should be noted that, for VAT purposes only, Sotheby’s is not usually treated as an agent and most property is sold as if it is the property of Sotheby’s.

In the following paragraphs, reference to VAT symbols shall mean those symbols located beside the lot number or the pre-sale estimates in the cataloguing (or amending saleroom notice).

a. Property with no VAT symbol-other than Book sales

Where there is no VAT symbol, Sotheby’s is able to use the Auctioneer’s Margin Scheme and VAT will not normally be charged on the hammer price.

Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge an amount in lieu of VAT at the standard rate on these premiums. This amount will form part of the buyer’s premium and overhead premium (as applicable) on our invoice and will not be separately identified. A limited range of goods, including most books, are not liable to VAT and therefore no amount in lieu of VAT will be added to the premiums.

Please see ‘Exports from the United Kingdom’ for the conditions to be fulfilled before the amount in lieu of VAT on the buyer’s premium and overhead premium (as applicable) may be canceled or refunded.

Buyers requiring an invoice under the normal VAT rules, instead of a margin scheme invoice, should notify Post Sale Services on the day of a live auction or on the closing date of a timed auction, as applicable, and an invoice with VAT on the hammer price will be raised. Re-invoicing in thsi way may make the lot ineligible to be re-sold using the margin scheme.

b. Property with no VAT symbol - Book sales

Where there is no VAT symbol the property is free from VAT and Sotheby’s will not charge VAT on the hammer price or the buyer’s premium.

c. Property with a # symbol - Book sales

Although these items are not free from VAT, Sotheby’s is able to use the margin scheme and VAT will not normally be charged on the hammer price. Sotheby’s must bear VAT on the buyer’s premium and hence will charge an amount in lieu of VAT at the standard rate on this premium. This amount will form part of the buyer’s premium on our invoice and will not be separately identified.

Please see ‘Exports from the United Kingdom’ for the conditions to be fulfilled before the amount in lieu of VAT on the buyer’s premium may be cancelled or refunded.

Buyers requiring an invoice under the normal VAT rules, instead of a margin scheme invoice, should notify Post Sale Services on the day of the auction and an invoice with VAT on the hammer price will be raised. Re-invoicing in this way may make the lot ineligible to be re-sold using the margin scheme.

d. Property with a †(single dagger) symbol

These items will be sold under the normal UK VAT rules and VAT will be charged at the standard rate on the hammer price, buyer’s premium and overhead premium (as applicable).

Please see ‘Exports from the United Kingdom’ for the conditions to be fulfilled before the VAT charged on the hammer price may be cancelled or refunded.

Except where the buyer is in business, Sotheby’s must always charge VAT on the buyer’s premium and overhead premium (as applicable) for these lots and will neither cancel nor refund the VAT charged.

e. Property with aα(alpha) symbol

Items sold to buyers whose address is in the UK will be assumed to be remaining in the UK. The property (other than Books) will be invoiced as if it had no VAT symbol (see ‘Property with no VAT symbol’ above for property other than Books)and the Books will be invoiced as if they had a # symbol (see ‘Property with a # symbol’ above).

Items sold to buyers whose address is outside the UK will be assumed to be exported from the UK. The property will be invoiced under the normal VAT rules (see ‘Property sold with a †symbol’ above). Although the hammer price will be subject to VAT this will be cancelled or refunded upon export -see ‘Exports from the United Kingdom’. The buyer’s premium and overhead premium (as applicable) will always attract VAT, except where the buyer is in business. However, buyers who are not intending to export their property from the UK should notify our Post Sale Services Department on the day of the sale and the property will be re-invoiced showing no VAT on the hammer price (see ‘Property sold with no VAT symbol’ above for property other than Books and ‘Property with a # symbol’ above for Books).

f. Property sold with a ‡(double dagger) or Ω(omega) symbol

These items have been imported from outside the UK to be sold at auction under Temporary Admission. When Sotheby’s releases such property to buyers in the UK, the buyer will become the importer and must pay Sotheby’s import VAT at the following rates on the hammer price:

‡ -the reduced rate

Ω-the standard rate

You should also note that the appropriate rate will be that in force on the date of collection of the property from Sotheby’s and not that in force at the date of a live sale or the closing date of a timed auction.

These lots will be invoiced under the margin scheme. Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge an amount in lieu of VAT at the standard rate on these premiums. This amount will form part of the buyer’s premium and overhead premium (as applicable) on our invoice and will not be separately identified. (VAT-registered buyers from the UK should note that the invoice issued by Sotheby’s for these items is not suitable evidence in respect of import VAT.)

On request, Sotheby’s may re-invoice the lot as if it had been sold with a †symbol and charge VAT at the standard rate on both the hammer price, buyer’s premium and overhead premium (as applicable) and provide a tax invoice to the buyer. This may enable a buyer who is VAT registered in the UK to claim VAT back following the usual HMRC guidance. Re-invoicing in this way may make the lot ineligible to be re-sold using the margin scheme.

Sotheby’s will transfer all lots sold subject to Temporary Admission to its Customs warehouse immediately after sale.

g. Wine and spirits with a♦ symbol

These items are offered in bond available duty paid. The buyer has a choice of taking the item in bond (with the sale being made in bond) or taking the item duty paid. Bidding is at in bond prices.

If taken in bond, VAT will not be charged on the hammer price. VAT will be charged at the standard rate on the buyer’s premium and overhead premium (as applicable).

If taken duty paid, duty at the current rate and bond clearance charges, equivalent to the standard rate of VAT on the hammer price plus duty, will be added to the buyer’s invoice. Unless notified otherwise at the time of sale, UK residents will receive a duty paid invoice. Buyers requiring their wine or spirits in bond must arrange collection of their wine or spirits either by a shipper with a bond movement guarantee or by a registered tax warehouse if the wine or spirits are to remain in the UK. If the buyer subsequently removes the wines or spirits from bond the buyer will be responsible for duty, clearance, delivery, VAT and any other charges that may apply from the date of the sale.

If taken duty paid, when Sotheby’s releases the property to buyers in the UK, the buyer must pay Sotheby’s duty at the current rate and import VAT at the standard rate on the hammer price plus duty which may not be cancelled or refunded by Sotheby’s. VAT will be charged at the standard rate on the buyer’s premium and overhead premium (if applicable). (VAT -registered buyers from the UK should note that the invoice issued by Sotheby’s showing the Bond Clearance Charge payable, is not suitable evidence for recovering that VAT. In order to recover this as input tax, a VAT registered buyer must purchase the wines or spirits in bond and clear it under his own name and VAT number. HM Revenue and Customs will then issue a Form C79 which is acceptable evidence for recovering the VAT as input tax subject to the normal rules.) (All business buyers from outside the UK should refer to ‘VAT refunds to Non UK business buyers’ for information on how to recover VAT incurred on the buyer’s premium and overhead premium, if applicable).

h. Wine and spirits with a ♢ symbol

These lots will be offered and sold in bond only. VAT will not be charged on the hammer price. VAT will be charged at the standard rate on the buyer’s premium and overhead premium (as applicable).

Wines and spirits will be transferred in bond to the buyer upon payment. Sotheby’s do not offer the facility of clearing the wines and spirits to duty paid. Delivery is not available.

(All business buyers from outside the UK should refer to ‘VAT refunds to Non UK business buyers’ for information on how to recover VAT incurred on the buyer’s premium and overhead premium, if applicable).

2. EXPORTS FROM THE UNITED KINGDOM AND VAT REFUNDS

In certain circumstances VAT may be cancelled or refunded provided Sotheby’s receive the appropriate export documents within the time limits stated in the following paragraphs.

Where a non UK buyer is able to show that it is in business, the VAT charged on the buyer’s premium and overhead premium (as applicable) on lots sold with the following symbols: †, ♦ and ♢ may be refunded. Sotheby’s is required to keep evidence sufficient to show HMRC that this is the case, acceptable evidence would include a current VAT, GST or Sales Tax registration or advertising material to show that the business offers its goods and services for sale.

In any case where Sotheby’s is unable to refund any VAT charged it may be possible to make a claim direct to HMRC, further information is available on their website at www.hmrc.gov.uk/vat/managing/international/nonEU-visits.htm, such refunds are available to businesses located outside of the UK.

a. Property with no VAT symbol (property other than Books) and Property with a # symbol (Books)

The amount in lieu of VAT charged on buyer’s premium and overhead premium (as applicable) may be refunded provided the buyer resides outside of the United Kingdom and the property is exported from the UK within 3 months of the sale. Sotheby’s must be provided with the appropriate proof of export immediately after export of the property.

b. Property with a † (single dagger) symbol

The VAT charged upon the hammer price may be refunded provided the buyer resides outside of the UK and the property is exported from the UK within 3 months of the sale. Sotheby’s must be provided with the appropriate proof of export immediately after export of the property. Sotheby’s is not able to cancel or refund any VAT charged on sales made to UK residents unless Sotheby’s exports the property directly from the UK.

c. Property with a ‡(double dagger)or a Ω(omega)symbol

The Temporary Admission VAT charged on the hammer price may be refunded under the following circumstances:-

• Sotheby’s is instructed to ship the property to a place outside the UK

• The property has been purchased by a business and is hand carried directly from the UK and Sotheby’s pre lodge the export entry with HMRC

• The VAT liability is transferred to your shipper’s own Temporary Admission or Customs Warehouse arrangement prior to collection from Sotheby’s.

Under all other circumstances Sotheby’s is required to complete the importation and pay the VAT due to HM Revenue and Customs prior to the property leaving its premises and so a VAT refund will not be possible.

d. Wines and spirits with ♦ or ♢ symbol

Where wines and spirits are offered in bond the only way to avoid paying UK VAT on the hammer price is to export the wine or spirits under bond. Where a non-UK buyer is able to show that it is in business, the VAT on the buyer’s premium and overhead premium may be refundable upon export.

In each of the above categories, where the appropriate conditions are satisfied, no VAT will be charged if, at or before the time of invoicing, the buyer instructs Sotheby’s to export the property from the UK. If such instruction is received after payment, a refund of the VAT amount will be made. If a buyer later decides not to use Sotheby’s shipping services a revised invoice will be raised for any applicable VAT and duty charges.

Where the buyer carries purchases from the UK personally or uses the services of another shipper, Sotheby’s will charge the VAT amount due as a deposit and will refund it if the lot has been exported within 3 months of the sale and the conditions set out in the section below entitled ‘Proof of Export’ are met.

3. PROOF OF EXPORT REQUIRED

For lots sold under the margin scheme (no VAT symbol for property other than Books and # symbol for Books) or the normal VAT rules († symbol), Sotheby’s must be provided with appropriate documentary proof of export from the UK.

For lots sold under Temporary Admission (‡ or Ω symbols), and subsequently transferred to Sotheby’s Customs Warehouse (into Bond), the lots must be shipped as described above in the paragraph headed Property with a ‡ or a Ω symbol.

Business buyers carrying their own property must obtain hand-carry papers from the Shipping Department for which a small administrative charge will be made. The VAT refund will be processed once the appropriate paperwork has been returned to Sotheby’s.

Sotheby’s is not able to cancel or refund any VAT charged on sales made to UK residents unless the lot is subject to Temporary Admission and the property is exported from the UK and Sotheby's is instructed to ship directly within 3 months of the sale.

Sotheby’s is not able to cancel or refund any VAT charged on sales to UK residents unless the lot is shipped as described above.

Buyers intending to export, repair, restore or alter lots sold under Temporary Admission (‡ or Ω symbols) and therefore transferred to Customs Warehouse after sale should notify the Shipping Department before collection. Failure to do so may result in the import VAT becoming payable immediately and Sotheby’s being unable to refund the VAT charged on deposit.

Any refund of VAT is subject to a minimum of £50 per shipment and a processing charge of £20.

4. VAT REFUNDS FROM HM REVENUE AND CUSTOMS

Where VAT charged cannot be cancelled or refunded by Sotheby’s, it may be possible to seek repayment from HM Revenue and Customs. Repayments in this manner are limited to businesses located outside the UK and may be considered for VAT charged on buyer’s premium and overhead premium (as applicable) on property sold under the normal VAT rules (i.e. with a ‘dagger’ or ‘alpha’ symbol).

Email the Overseas Repayment Unit at: newcastle.oru.hmrc.gsi.gov.uk

Use this email to contact HMRC about reclaiming VAT paid in the UK if your business is based overseas.

5. SALES AND USE TAXES

Buyers should note that local sales taxes or use taxes may become payable upon import of items following purchase (for example, use tax may be due when purchased items are imported into certain states in the US). Buyers should obtain their own advice in this regard.

In the event that Sotheby’s ships items for a buyer in a sale to a destination within a US state in which Sotheby’s is registered to collect sales tax, Sotheby’s is obliged to collect and remit the respective state’s sales / use tax in effect on the total purchase price (including hammer price, buyer’s premium, overhead premium (as applicable) and any requested shipping services including insurance, as applicable) of such items, regardless of the country in which the buyer resides or is a citizen. Where the buyer has provided Sotheby’s with a valid Resale Exemption Certificate prior to the release of the property, sales / use tax will not be charged.

Clients who wish to provide resale or exemption documentation for their purchases and/or who wish to have their purchased lots shipped to the US by Sotheby’s are advised to contact our Post Sale Services at [email protected]

PARIS

1. VAT

Value Added Tax (VAT) may be payable on the hammer price and/or the buyer’s premium and overhead premium (as applicable).

The following paragraphs are intended to give general guidance to buyers on the VAT and certain other potential tax implications of purchasing property at Sotheby’s. The information concerns the most usual circumstances and is not intended to be complete. Sotheby's is unable to provide tax advice to you and recommends you obtain independent tax advice. In all cases the relevant tax legislation takes precedence and the VAT rates in effect on the day of a sale of a lot will be the rates charged except for lots sold subject to Temporary Admission for which the applicable rate will be that in force at the time of collection. It should be noted that, for VAT purposes only, Sotheby’s is not usually treated as an agent and most property is sold as if it is the property of Sotheby’s.

In the following paragraphs, reference to VAT symbols shall mean those symbols located beside the lot number or the pre-sale estimates in the cataloguing (or amending saleroom notice).

a. Property with no VAT symbol

Where there is no VAT symbol, Sotheby’s is able to use the Margin Scheme and VAT will not normally be charged on the hammer price.

Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge VAT at the standard rate (currently 20%) on these premiums. This amount will form part of the buyer’s premium and overhead premium (as applicable) on our invoice and will not be separately identified. Books are liable to VAT at a reduced rate and therefore VAT at the reduced rate (currently 5.5%) will be added to the premiums.

Please see section ‘VAT REFUNDS’ below for the conditions to be fulfilled before VAT on the buyer’s premium and overhead premium (as applicable) may be refunded.

b. Property with a † (single dagger) symbol

These items will be sold under the normal VAT rules and VAT will be charged (currently at a rate of 20% or 5.5% for books) on the hammer price, buyer’s premium and overhead premium (as applicable).

Please see section ‘VAT REFUNDS’ for the conditions to be fulfilled before the VAT charged on the hammer price and buyer’s premium may be refunded.

c. Property sold with a ‡ (double dagger) or Ω (omega) symbol

These items have been imported from outside the European Union to be sold at auction under Temporary Admission. When Sotheby’s releases such property to buyers in the European Union, the buyer will become the importer and must pay Sotheby’s import VAT at the following rates on the hammer price:

‡ - the reduced rate

Ω - the standard rate

These lots will be invoiced under the margin scheme. Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge VAT (currently at a rate of 20% or 5.5% for books) on these premiums. This amount will form part of the buyer’s premium and overhead premium (as applicable) on our invoice and will not be separately identified.

d. Property with a ♢ symbol (Wines and spirits offered in bond only)

These lots will be offered and sold in bond only. VAT will not be charged on the hammer price. VAT will be charged at the standard rate on the buyer’s premium and overhead premium (as applicable).

Wines and spirits will be transferred in bond to the buyer upon payment. Sotheby’s do not offer the facility of clearing the wines and spirits to duty paid. Buyers seeking to collect their lots duty paid in the EU will be required to pay an applicable clearance VAT and duty directly to their shipping agent or fiscal representative. A processing fee is applicable and will be charged directly by their shipping agent or fiscal representative. Delivery is not available.

All business buyers from outside the European Union should refer to ‘VAT REFUNDS’ for information on how to recover VAT incurred on the buyer’s premium and overhead premium (as applicable).

2. VAT REFUNDS

In certain circumstances VAT may be refunded provided Sotheby’s receive the appropriate export documents within the time limits stated in the following paragraphs. The document must list Sotheby's France as 'expediter' (box 2) and have the mention ‘ECS- Sorti’.

a. Exports from the European Union

Property with no VAT symbol

The amount in lieu of VAT charged on buyer’s premium and overhead premium (as applicable) may be refunded provided the buyer resides outside of France and the property is exported from the European Union within 3 months of the sale.

Where a buyer residing outside of France arranges their own export, the buyer must provide Sotheby’s with evidence that the property has been exported outside the European Union within 3 months of sale (in the form of a copy of the export documentation stamped by customs officers, where Sotheby’s appears in Box 44 in accordance with the arrangements laid down by the notice of July 24th, 2017 of the French Customs Authorities).

Property with a † (single-dagger)

The VAT charged on the hammer, buyer’s premium and overhead premium (as applicable) may be refunded provided the buyer resides outside of France and the property is exported from the European Union within 3 months of the sale. Where a buyer residing outside of France arranges their own export, the buyer must provide Sotheby’s with evidence that the property has been exported outside the European Union within 3 months of sale (in the form of a copy of the export documentation stamped by customs officers, where Sotheby’s appears in Box 44 in accordance with the arrangements laid down by the notice of July 24th, 2017 of the French Customs Authorities).

Lots under Temporary Admission - Property with a ‡ (double dagger) or an Ω (omega) symbol

The Temporary Admission VAT charged on the hammer price may be refunded if the property is exported to a place outside the European Union. The VAT charged on the buyer’s premium and overhead premium (as applicable) under the margin scheme are also refundable upon export out of the European Union.

Any property which is on temporary admission in France will be subjected to clearance inward (payment of the VAT, duties and taxes) upon release of the property. However, if written confirmation is provided prior to the release of the property to Sotheby’s that the temporarily imported property will be re-exported, and the French customs documentation has been duly signed and returned to Sotheby’s within 3 months after the sale (in the form of a copy of the export documentation stamped by customs officers, where Sotheby’s appears in Box 44 in accordance with the arrangements laid down by the notice of July 24th, 2017 of the French Customs Authorities), the duties and taxes can be reimbursed to a buyer exporting outside of the European Union. After the 3-month period, no reimbursement will be possible.

VAT refunds to Non-European business buyers - Property with ♦ or ♢ symbol

Where wines and spirits are offered in bond the only way to avoid paying French VAT on the hammer price is to export the wine or spirits under bond. VAT on the buyer’s premium and overhead premium (as applicable) may be refundable upon export (if charged).

In each of the above categories, where the appropriate conditions are satisfied, no VAT will be charged if, at or before the time of invoicing, the buyer instructs Sotheby’s to export the property from the European Union. If such instruction is received after payment, a refund of the VAT amount will be made. If a buyer later decides not to use Sotheby’s shipping services a revised invoice will be raised for any applicable VAT and duty charges.

Where the buyer carries purchases from the European Union personally or uses the services of another shipper, Sotheby’s will charge the VAT amount due as a deposit and will refund it if the lot has been exported within 3 months of the sale and the conditions set out in the section below entitled ‘PROOF OF EXPORT REQUIRED’ are met.

b. Intra-Community supply

Any domestic and/or import VAT charged as applicable upon the hammer price and buyer’s premium and overhead premium (as applicable) may be refunded to VAT registered professional buyers from European Union countries other than France provided the property is shipped from France to another country within the European Union within 1 month of the sale. Sotheby’s must be provided with:

the buyer’s EU VAT registration number,
appropriate proof of shipment for the property, and
a signed declaration of intra-community delivery for professionals of the European Union.

For the avoidance of doubt, Sotheby’s is not able to refund any VAT charged on sales made to French residents.

c. Proof of export required

For lots sold under the margin scheme (no VAT symbol) or the normal VAT rules († symbol), Sotheby’s must be provided with appropriate documentary proof of export from the European Union.

For lots sold under Temporary Admission (‡ or Ω symbols), the lots must be shipped as described above in the paragraph headed Property with a ‡ or a Ω symbol. The VAT refund will be processed once the appropriate paperwork has been returned to Sotheby’s.

d. Sales and use taxes

e. Pre-emption right

The French state retains a pre-emption right on certain works of art and archives.

In the context of a live auction, the French State may exercise this pre-emption right during the live auction. In case of confirmation of the pre-emption right within fifteen (15) days from the date of the sale, the French state shall be subrogated in the buyer’s position.

In the context of a timed auction, the French State may exercise this pre-emption right at the end of the timed auction and it must be confirmed within four (4) hours from the notification of the required information by Sotheby’s (closing date and hour, description of the sold lots, hammer price achieved for sold lots) which shall be made at the closing date of the timed auction. In case of confirmation within such time period, the French State shall be subrogated to the buyer’s position.

Considered as works of art, for purposes of pre-emption rights are the following categories:

Archaeological objects more than 100 years old found during land based and underwater searches of archaeological sites and collections;
Pieces of decoration issuing from dismembered buildings;
Watercolours, gouaches and pastels, drawings, collages, prints, posters and their frames;
Photographs, films and negatives thereof irrespective of the number;
Films and audio-visual works;
Original sculptures or statuary or copies obtained by the same process and castings which were produced under the artists or legal descendants’ control and limited in number to less than eight copies, plus four numbered copies by the artists;
Contemporary works of art not included in the above categories 3 to 6;
Furniture and decorative works of art;
Incunabula and manuscripts, books and other printed documents;
Collections and specimens from zoological, botanical, mineralogy, anatomy collections; collections and objects presenting a historical, palaeontological, ethnographic or numismatic interest;
Means of transport;
Any other antique objects not included in the above categories 1 to 11

MILAN

1. VAT

Value Added Tax (VAT) may be payable on the hammer price and/or the buyer’s premium and overhead premium (as applicable).

The following paragraphs are intended to give general guidance to buyers on the VAT and certain other potential tax implications of purchasing property at Sotheby’s. The information concerns the most usual circumstances and is not intended to be complete. Sotheby's is unable to provide tax advice to you and recommends you obtain independent tax advice. In all cases the relevant tax legislation takes precedence and the VAT rates in effect on the day of a sale of a Lot will be the rates charged except for lots sold subject to Temporary Admission for which the applicable rate will be that in force at the time of collection . It should be noted that , for VAT purposes Sotheby’s operates with a mandate to sell.

For the purpose of harmonisation of the fiscal procedure between the members of the European Union, on 1st January 2001 Italy implemented new rules on the applicability of the margin scheme to auctioneers. Section 45 of law 342 of 21st November 2000 provides that the margin scheme applies to sale agreements with any of the following parties pursuant to which a commission is due to an auction house:

individuals;
tax payers who elect for the sale to be subject to the margin scheme;
tax payers who could not deduct VAT pursuant to sections 19, 19 bis, and 19 bis2 of law 633/72 (and sold the property using the exemption provided in sections 10, 27 quinquies of the aforesaid law); or
tax payers who benefit in their home country from the duty free regime for small sized undertakings.

In the following paragraphs, reference to VAT symbols shall mean those symbols located beside the lot number or the pre sale estimates in the cataloguing (or amending sale room notice).

If you have any questions relating to VAT, our Post Sale Services will be happy to assist you via the following contact details:

Email: [email protected]

Monday to Friday, 10am to 1pm & 2pm to 5pm.

Cashier hours: Monday to Friday, 10am to 1pm & 2pm to 5pm

a. Property with no VAT symbol

Where there is no VAT symbol, Sotheby’s is able to use the Margin Scheme and VAT will not normally be charged on the hammer price Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge VAT at the standard rate on these premiums (currently at 22%). The amount will form part of the buyer’s premium and the overhead premium (if applicable) on our invoice and will not be separately identified.

Please see sections Intra Community Supply’ and ‘Exports from the European Union ’ below for the conditions to be fulfilled before VAT on the buyer’s premium and overhead premium (if applicable) may be refunded.

Buyers requiring an invoice under the normal VAT rules, instead of a Margin Scheme invoice, should notify the Post Sale Service Department on the day of a live auction or on the closing date of a timed auction, as applicable, and an invoice with VAT on the hammer price and buyer’s premium will be raised.

Please note that in the context of intra--community relations, art. 37, paragraph 2, of the Legislative Decree no. 41/1995 establishes that the principle based on the taxability in the country of destination envisaged for intra--community exchanges of goods does not apply to transactions carried out with the application of the margin scheme as these transactions are subject to tax in the country of origin. Sotheby's will therefore apply VAT regardless of the status of the EU transferee (VAT subject or "private consumer").

b. Property with a † (single dagger) symbol

These items will be sold under the normal VAT rules and VAT will be charged (currently at a rate at a rate 22%) on the hammer price, buyer’s premium and overhead premium (as applicable).

Please see sections ‘‘Intra-Community Supply’ and ‘Exports from the European Union’ below for the conditions to be fulfilled before VAT on the hammer price may be refunded.

c. Property sold with a ‡ (double dagger)

These items have been imported from outside the European Union to be sold at auction under a temporary customs license (“Temporary Admission”) which allows the items to be temporarily totally or partially exempt from customs duties (VAT and duties).

When Sotheby’s releases such property to foreign buyers, the buyer will become the importer and must pay import VAT. You should also note that the appropriate rate will be that in force on the date of collection of the property from Sotheby’s and not that in force at the date of a live sale or the closing date of a timed auction.

Please see sections ‘‘Intra-Community Supply’ and ‘Exports from the European Union‘ below for the conditions to be fulfilled before VAT may be refunded.

The closure of the Temporary Admission is at the expense of the buyer. Payment of the closure and customs duties will be charged to the buyer by the shipper in the name of and on behalf of the Customs Agency.

In the event that the goods are not re-exported but nationalized, the buyer will have to pay any duties and VAT on the hammer price in addition to the compensatory interest from the date the goods entered the temporary importation procedure, where applicable.

The costs in respect of the final importation of a lot will be at the buyer’s expense. Sotheby’s will not be responsible for the timing of the closure of the Temporary Admission.

2. VAT REFUNDS

In certain circumstances VAT may be refunded provided Sotheby’s receive the appropriate export documents within the time limits stated in the following paragraphs.

A. EXPORTS FROM THE EUROPEAN UNION

a. Property with no VAT symbol

The amount in lieu of VAT charged on buyer’s premium and overhead premium (as applicable) may be refunded provided the buyer resides outside of the European Union and the property is exported from the European Union within 3 months of the sale. Sotheby’s must be provided with the appropriate proof of export immediately after export of the property.

b. Property with a † (single dagger) symbol

The VAT charged on the hammer price, buyer’s premium and overhead premium (as applicable) may be refunded provided the buyer resides outside of the European Union and the property is exported from European Union within 3 months of the sale. Sotheby’s must be provided with the appropriate proof of export of the property.

c. Lots under Temporary Admission –– Property with a ‡ (double dagger) or an Ω (omega) symbol

The custom Temporary Admission VAT charged on the hammer price may be refunded if the property is exported to a place outside the European Union. The VAT charged on the the buyer’s premium and overhead premium (as applicable) under the margin scheme are also refundable upon export out of the European Union. Sotheby’s must be provided with the appropriate proof of export immediately after export of the good.

B. INTRA-COMMUNITY SUPPLY

In certain circumstances, VAT may be refunded provided that Sotheby’s receives appropriate documentation of the goods leaving Italy.

If an intra-Community buyer can prove that they are a taxable person, the VAT charged may be refunded. Sotheby’s is required to keep sufficient evidence to prove the above.

Acceptable evidence of intra-Community transfer is outlined in the EU Regulation 2018/1912 of 4 December 2018 which introduced Article 45-bis in the EU Implementing Regulation n. 282/2011 and those indicated by any subsequent amendments and additions made by the individual country members of the European Union.

3. PROOF OF EXPORT REQUIRED

For lots sold under the margin scheme (no VAT symbol) or the normal VAT rules († symbol) Sotheby’s must be provided with appropriate documentary proof of export from the European Union.

For lots sold under Temporary Admission (‡ or Ω symbols) the lots must be shipped as described above in the paragraph headed Property with a ‡ or a Ω symbol.

The VAT refund will be processed once the appropriate paperwork has been returned to Sotheby’s.

A copy of the DAE electronic declaration together with the MRN and the notice of the MRN export, which is available on the customs’ website is deemed to be proof of export.

The buyer must provide Sotheby’s with the appropriate proof of export of the goods within 90 days of the sale.

4. SALES AND USE TAXES

Clients who wish to have more information are advised to contact the Post Sale Service before arranging shipping.

Email: [email protected]@sothebys.com

(Monday to Friday, 10am – 1pm; 2pm – 6pm).

COLOGNE

1. VAT

Value Added Tax (VAT) may be payable on the hammer price and/or the buyer’s premium and overhead premium (as applicable).

Buyer’s premium and overhead premium (as applicable) may attract a charge in lieu of VAT. The following paragraphs are intended to give general guidance to buyers on the VAT and certain other potential tax implications of purchasing property at Sotheby’s. The information concerns the most usual circumstances and is not intended to be complete. Sotheby's is unable to provide tax advice to you and recommends you obtain independent tax advice. In all cases the relevant tax legislation takes precedence and the VAT rates in effect on the day of a sale of a Lot will be the rates charged except for lots sold subject to Temporary Admission for which the applicable rate will be that in force at the time of collection. It should be noted that, for VAT purposes only, Sotheby’s is not usually treated as an agent and most property is sold as if it is the property of Sotheby’s.

In the following paragraphs, reference to VAT symbols shall mean those symbols located beside the lot number or the pre-sale estimates in the cataloguing (or amending saleroom notice).

a. Property with no VAT symbol

Where there is no VAT symbol, Sotheby’s is able to use the Auctioneer’s Margin Scheme and VAT will not normally be charged on the hammer price. Sotheby’s must bear VAT on the buyer’s premium and overhead premium (as applicable) and hence will charge an amount in lieu of VAT at the standard rate on these premiums. This amount will form part of the buyer’s premium and overhead premium (as applicable) on our invoice and will not be separately identified. A limited range of goods, including most books, are not liable to VAT and therefore no amount in lieu of VAT will be added to the premiums.

Buyers requiring an invoice under the normal VAT rules, instead of a margin scheme invoice, should notify the Post Sale Service Department on the day of a live auction or on the closing date of a timed auction, as applicable, and an invoice with VAT on the hammer price will be raised. Buyers requiring re-invoicing under the normal VAT rules subsequent to a margin scheme invoice having been raised should contact the Post Sale Services Department for assistance.

b. Property with a † (single dagger) symbol

In contrast to the rules under the margin scheme taxation (see section 1), these objects are sold according to the normal sales tax regulations (standard taxation). The sales tax is generally levied at the applicable sales tax rate on the hammer price, the buyer's premium and the overhead premium (if applicable).

In the event invoices need to be corrected - e.g. due to tax-free deliveries to the rest of the community or tax-free export deliveries - please contact Sotheby’s Post Sale Services department (see contact details in section 1).

You can find information on potential VAT refund options further below.

c. Property sold with a ‡ (double dagger) or Ω (omega) symbol

These objects were imported from outside the European community area to be sold at auction under Temporary Admission.

If Sotheby's releases such objects to buyers within in the European community, the buyer will be regarding as importing entity and Sotheby's will have to pay the import sales tax at the following rates on the hammer price:

‡ - reduced rate
Ω – standard rate

Please note that the applicable VAT rate is the one that applies on the day the lot is collected and not the one that applies on the day the auction ends.

Where legally required or in accordance with the wishes of the buyer to have the standard taxation apply instead of the margin scheme taxation, Sotheby’s will issue the invoice as if the lot had been sold with the symbol †.

Buyers with sales tax registration in the community area should note that the invoice issued by Sotheby’s for such objects is not suitable proof of payment of import sales tax. With regard to the obligation to provide evidence, the general sales and customs regulations apply.

Sotheby's will transfer all lots that are sold subject to temporary use to its bonded warehouse immediately after the sale.

2. VAT REFUND

In some cases, if certain requirements are met, it may be possible to claim a refund of the sales tax in accordance with the aforementioned paragraphs or to correct the invoice. This can be the case, for example, when objects are exported from the European community area.

Whether this option is possible or not will always depend on each individual case. If you have questions, please contact Post Sale Services Germany at: +49 221 65032090 or by email to [email protected]

Please note that Sotheby’s cannot accept any liability for and does not guarantee the successful execution by any EU tax or customs authority of the necessary documentation for the refund of sales tax.

Buyers intending to export, repair, restore, or modify lots that are sold under temporary use (symbol ‡ OR Ω) and therefore placed in bonded warehouse after sale should notify the shipping department prior to collection. Failure to do so can result in import sales tax becoming due immediately and Sotheby's not being able to initiate any possible refund.

3. SALES AND USE TAXES

Buyers should note that local sales taxes or use taxes may become payable upon import of items following the purchase (for example, use tax may be due when purchased items are imported into certain states in the US). Buyers should obtain their own advice in this regard.

In the event that Sotheby’s ships items for a buyer in a sale to a destination within a US state in which Sotheby’s is registered to collect sales tax, Sotheby’s is obliged to collect and remit the respective state’s sales / use tax in effect on the total purchase price (including hammer price, buyer’s premium, overhead premium (if applicable) and any requested shipping services including insurance, as applicable) of such items, regardless of the country in which the buyer resides or is a citizen. Where the buyer has provided Sotheby’s with a valid Resale Exemption Certificate prior to the release of the property, sales / use tax will not be charged.

GENEVA & ZURICH

1. VAT

Value Added Tax (“VAT”) will be payable at 8.1% on the hammer price, buyer’s premium, overhead premium (if applicable) and any applicable supplementary charges.

Property with a † (single dagger) symbol

This symbol denotes (i) items that are sold under the normal Swiss VAT rules, and (ii) items that have been imported from outside Switzerland or Lichtenstein for sale in Switzerland and that are being sold under Sotheby’s temporary admission arrangement or equivalent.

Sotheby’s shall charge the buyer Swiss VAT at the prevailing rate on the hammer price, buyer’s premium and overhead premium (as applicable).

Please see ‘Exports from Switzerland and Liechtenstein and VAT refunds by Sotheby’s’ for the conditions to be fulfilled before the VAT charged may be cancelled or refunded.

Property without a symbol

The hammer price is being collected on behalf of an undisclosed consignor under direct agency rules and no VAT will be applied.

Sotheby’s shall charge the buyer Swiss VAT under the normal VAT rules at the standard rate on the buyer’s premium and overhead premium (as applicable).

2. EXPORTS FROM SWITZERLAND AND LIECHTENSTEIN & VAT REFUNDS

Buyers domiciled outside Switzerland or Liechtenstein are entitled to a refund of VAT after receipt by Sotheby’s of an official Swiss or Liechtenstein export declaration for the objects purchased, duly stamped by Swiss or Liechtenstein customs. However, buyers must export their purchases from Switzerland or Liechtenstein no later than thirty (30) days after collection. Sotheby’s invoice may be free of VAT on the basis that the property will be shipped outside of Switzerland and Liechtenstein. In the event that property is collected from Sotheby’s or shipped within Switzerland or Liechtenstein it will be necessary to re-issue your invoice with VAT.

3. SALES AND USE TAXES

In the event that Sotheby’s ships items for a buyer in a sale to a destination within a US state in which Sotheby’s is registered to collect sales tax, Sotheby’s is obliged to collect and remit the respective state’s sales / use tax in effect on the total purchase price (including hammer price, buyer’s premium, overhead premium (if applicable) and any requested shipping services including insurance, as applicable) of such items, regardless of the country in which the buyer resides or is a citizen. Where the buyer has provided Sotheby’s with a valid Resale Exemption Certificate prior to the release of the property, sales / use tax will not be charged.

Email: [email protected].

SINGAPORE

1. SALES AND USE TAXES

In the event that Sotheby’s ships items for a purchaser in this sale to a destination within a US state in which Sotheby’s is registered to collect sales tax, Sotheby’s is obliged to collect and remit the respective state’s sales/use tax in effect on the total purchase price (including hammer price, Buyer’s Premium, Overhead Premium and any shipping services including insurance), of such items, regardless of the country in which the purchaser resides or is a citizen. Where the purchaser has provided Sotheby’s with a valid Resale Exemption Certificate prior to the release of the property, sales / use tax will not be charged. Clients who wish to provide resale or exemption documentation for their purchases should contact Post Sale Services.

2. GOODS AND SERVICES TAX

Goods and Services Tax (“GST”) is applicable to the purchase price and other services charge payable by the buyer. If the property is delivered to the buyer in Singapore and outside customs control, GST will be applicable to the purchase price and other services charge.

If the property is delivered to the buyer in a bonded warehouse within Singapore or exported outside Singapore, the GST on the purchase price and services charge may be zero-rated, subject to the conditions for zero-rating being fulfilled.

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Guide for Buyers | VAT & Other Tax Information

NEW YORK

To better assist our clients, we have prepared the following information on Sales and Use Tax related to property purchased at auction.

1. Why We Collect Sales Tax

2. Where Sotheby’s Collects Sales Tax

3. Where Sotheby’s Wine Collects Sales Tax

4. Sales Taxes, VAT and other Indirect Taxes on NFTS

5. Sotheby’s Arranged Shipping

6. Client Arranged Shipping

7. Where We are Not Required to Collect Sales Tax

8. Certain Exemptions

LONDON

1. VAT

a. Property with no VAT symbol-other than Book sales

b. Property with no VAT symbol - Book sales

c. Property with a # symbol - Book sales

d. Property with a †(single dagger) symbol

e. Property with aα(alpha) symbol

f. Property sold with a ‡(double dagger) or Ω(omega) symbol

g. Wine and spirits with a♦ symbol

h. Wine and spirits with a ♢ symbol

2. EXPORTS FROM THE UNITED KINGDOM AND VAT REFUNDS

a. Property with no VAT symbol (property other than Books) and Property with a # symbol (Books)

b. Property with a † (single dagger) symbol

c. Property with a ‡(double dagger)or a Ω(omega)symbol

d. Wines and spirits with ♦ or ♢ symbol

3. PROOF OF EXPORT REQUIRED

4. VAT REFUNDS FROM HM REVENUE AND CUSTOMS

5. SALES AND USE TAXES

PARIS

1. VAT

a. Property with no VAT symbol

b. Property with a † (single dagger) symbol

c. Property sold with a ‡ (double dagger) or Ω (omega) symbol

d. Property with a ♢ symbol (Wines and spirits offered in bond only)

2. VAT REFUNDS

a. Exports from the European Union

b. Intra-Community supply

c. Proof of export required

d. Sales and use taxes

e. Pre-emption right

MILAN

1. VAT

a. Property with no VAT symbol

b. Property with a † (single dagger) symbol

c. Property sold with a ‡ (double dagger)

2. VAT REFUNDS

A. EXPORTS FROM THE EUROPEAN UNION

a. Property with no VAT symbol

b. Property with a † (single dagger) symbol

c. Lots under Temporary Admission –– Property with a ‡ (double dagger) or an Ω (omega) symbol

B. INTRA-COMMUNITY SUPPLY

3. PROOF OF EXPORT REQUIRED

4. SALES AND USE TAXES

COLOGNE

1. VAT

a. Property with no VAT symbol

b. Property with a † (single dagger) symbol

c. Property sold with a ‡ (double dagger) or Ω (omega) symbol

2. VAT REFUND

3. SALES AND USE TAXES

GENEVA & ZURICH

1. VAT

Property with a † (single dagger) symbol

Property without a symbol

2. EXPORTS FROM SWITZERLAND AND LIECHTENSTEIN & VAT REFUNDS

3. SALES AND USE TAXES

SINGAPORE

1. SALES AND USE TAXES

2. GOODS AND SERVICES TAX