The German Association of Galleries and Art Dealers (BVDG) expresses great satisfaction with the inclusion of the reduced VAT rate for the art market in the 2024 Annual Tax Act. Starting January 2025, the VAT rate for art sales will be reduced from 19% to 7%, addressing a long-standing demand from the art community.

Ten years ago, the VAT reduction for galleries was abolished in Germany due to an EU directive. Since then, the BVDG has been advocating for its reinstatement. “Galleries have been treated unfairly ever since,” the BVDG noted, “while artists continued to benefit from a 7% VAT rate, galleries faced a higher tax burden. It was crucial to bridge this gap between artists and their representatives.”

The change came about after Germany initiated a revision of the old EU VAT directive, which now includes art objects and collectibles in the list of goods eligible for reduced rates. “This adjustment, now incorporated into German tax law, will take effect in January 2025,” the BVDG explained.

The BVDG expressed gratitude to Minister of State for Culture Claudia Roth and Federal Minister of Finance Christian Lindner for their commitment to Germany as an art market location. “In economically challenging times, their efforts help eliminate injustices,” the association stated.

Galleries work closely with artists, providing vital contributions to public discourse. Visual arts challenge society with new ideas, making transformations and fractures in various aspects of life visible. “Art opens eyes and sparks debate,” the BVDG emphasized. “Galleries support their artists by offering diverse spaces and communities, enabling art to be impactful.”

The new law ensures that galleries are once again treated equally with artistic creators and other cultural enterprises. “This strengthens their competitiveness and prepares them for the future,” the BVDG concluded.