Art and VAT in Belgium from 2026: overview of the renewed regime

Since 31 December 2025, a fundamentally revised VAT regime applies in Belgium to works of art, collectors’ items and antiques. This reform, introduced by the Law of 19 December 2025 (Belgian Official Gazette of 31 December 2025) and further clarified in VAT Circular 2026/C/14 of 13 January 2026, provides that supplies of works of art are, in principle, subject to the reduced VAT rate of 6 percent. At the same time, the traditional margin scheme for art dealers has been retained but significantly restricted, with the aim of limiting distortions of competition and ensuring closer alignment with EU law.

This reform implements Directive (EU) 2022/542 and abolishes the previous distinction under which the reduced rate of 6 percent primarily applied to supplies made directly by the artist or his rights holders, while subsequent resales by galleries and art dealers were generally subject to the standard rate of 21 percent. For gallery owners, artists and collectors, this constitutes a substantial shift in the VAT treatment of art transactions.

In this article, we examine the new regime step by step, with particular attention to its practical implications for acquisitions, leasing arrangements, cross-border transactions and the revised scope of the margin scheme.

Art & VAT: quick overview

The table below summarizes the key scenarios. A detailed discussion of each situation can be found below.

Scenario	VAT rate	Deductible for VAT-liable buyer?	Margin scheme
Purchase from artist/heir	6% (subject to conditions)	Yes	Not applicable if input VAT was deducted
Purchase from a gallery (standard arrangement)	6% (subject to conditions)	Yes	Not applicable if input VAT was deducted
Purchase from a gallery (margin scheme)	21% on the profit margin (margin scheme)	No	Possible upon later resale (if conditions met)
Purchase from a private individual	No VAT	No right of deduction	Possible upon later resale (if conditions met)
Rental / provision	21% (in principle)	Yes (for taxable activities)	Not applicable
Sale to EU private individual (with shipping)	VAT of country of arrival (OSS)	/	Not applicable
B2B EU (intra-Community supply)	0% Belgian VAT	Full deduction	Not applicable
Exports outside the EU	0% (zero rate)	Full deduction	Not applicable

Below, we delve deeper into the various VAT regimes that may apply to art transactions, analyzing the conditions, points of attention, and tax implications for each scenario.

What is a work of art for VAT purposes?

Belgian VAT legislation employs its own strict definition of what qualifies as an “artwork”. This definition can be found in Section XXI of the Annex to Royal Decree No. 20 of 20 July 1970, and largely follows the provisions of the EU VAT Directive. Only goods that meet these criteria qualify for the reduced rate of 6 percent and/or the special margin scheme.

For the sake of clarity, we reproduce the wording of the VAT legislation below:

1° "works of art" :

a) paintings, collages and similar decorative plates, paintings and drawings entirely by the artist, with the exception of:

- construction drawings and other drawings for industrial, commercial, topographical and similar purposes;

- hand-decorated objects;

- painted canvas for theatre wings, studio backgrounds or similar use;

original engravings, original etchings and original lithographs;

c) original statues and original sculptures entirely by the artist, regardless of the material from which they are made; casts of sculptures in an edition of no more than eight copies controlled by the artist or his rights holders;

d) tapestries and wall textiles, hand-made according to original designs by artists, provided that no more than eight copies of each exist;

e) unique ceramic objects, entirely by the artist and signed by him, with the exception of utilitarian objects;

f) enamel work on copper, entirely handcrafted, up to a maximum of eight numbered pieces signed by the artist or the studio, excluding jewelry, precious metalwork, and utilitarian objects;

g) photographs taken by the artist, printed by him or under his supervision, signed and numbered, with an edition of at most thirty copies for all formats and media combined;

2° "objects for collections" :

a) postage stamps, fiscal stamps, franked envelopes and postcards, first-day covers and the like, cancelled or, if uncancelled, insofar as they are not valid or will not become valid;

b) collections and objects for collections, of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest;

3° "antiquities" : objects other than the works of art and objects for collections referred to in 1° and 2° above, older than one hundred years.

Works that do not meet these strict conditions are, in principle, subject to the standard VAT rate of 21 percent. It is therefore crucial to carefully verify for each transaction whether the item concerned effectively qualifies as a work of art within the meaning of VAT. In practice, we observe that this qualification frequently gives rise to discussions with the tax authorities, who generally rely strictly on the statutory criteria during audits and leave little room for a broader artistic interpretation.

In particular in the case of contemporary art, photography and hybrid works, it is regularly concluded that the item concerned does not meet the formal requirements, resulting in the application of the standard rate of 21 percent. In this regard, we are regularly consulted in cases where the tax authorities question a previous qualification or reclassify the work in the context of an audit. It is therefore essential to pay particular attention to this qualification already at the stage of structuring a transaction and documenting the work, in order to avoid discussions with the tax authorities as much as possible. This is all the more important since a different assessment not only leads to a higher VAT rate, but may also give rise to additional assessments, interest and administrative penalties.

Purchase of art in Belgium: which VAT rate applies?

As of 31 December 2025, the general principle is that supplies of works of art, collectors’ items and antiques in Belgium are subject to the reduced VAT rate of 6 percent, regardless of whether the seller is an artist, an heir, a gallery owner, an art dealer or another reseller, and regardless of whether it concerns a new work or a second-hand piece. By doing so, the legislator has largely abolished the previous distinction between direct sales and resale. The reduced rate now applies to all sales of these goods, unless the seller applies the margin scheme where this remains possible.

When you, as a private individual or as a VAT-liable enterprise, purchase a work of art directly from the artist or his heirs, the supply is in principle subject to 6 percent VAT on the full sales price. For private individuals, this VAT constitutes a final cost. For VAT-liable persons who use the work for taxable activities, for example resale, rental subject to VAT or as decoration in a taxable business, there is in principle a right to deduct this input VAT in accordance with the general rules of the VAT Code.

When purchasing from a gallery or a professional art dealer, two possible scenarios arise. If the gallery applies the standard scheme, it charges 6 percent VAT on the full sales price. You receive an invoice with explicitly stated VAT, which you as a person entitled to deduction can in most cases fully recover. If, on the other hand, the gallery applies the margin scheme (see below), which is only possible when it has acquired the work itself without VAT from a private individual or under the margin scheme from another reseller, VAT is due at 21 percent exclusively on the profit margin. In that case, no separate VAT amount appears on the invoice, as a result of which the buyer has no right of deduction. The VAT is then included in the sales price.

An important novelty since the reform is that the margin scheme may no longer be applied to works of art which the reseller has acquired or imported with application of the reduced rate of 6 percent. In those cases, the standard scheme is always mandatory, with 6 percent VAT on the full price and retention of the right of deduction for the trader. If you as a trader or private individual purchase directly from a non VAT liable private individual, no VAT is due on the purchase. If you subsequently resell the work as an art dealer, you can in principle still apply the margin scheme, with VAT of 21 percent only on the profit margin.

Occasional sale of art as a private individual

VAT legislation provides that only those who independently carry out an economic activity are subject to VAT (Article 9 of the VAT Directive). If you are an ordinary private individual selling a work of art, you are in principle not subject to VAT. This is the case when you have purchased the work for private use, for example to display it in your home, and do not carry out a professional activity involving the regular purchase and sale of art with a view to profit. In those circumstances, you are not a VAT taxable person for this sale. This means in concrete terms that you do not have to charge VAT and that you do not need a VAT number to carry out such an occasional sale. A one-off or sporadic sale from private assets, such as the sale of a painting after several years of ownership, is in principle not regarded in Belgium as an economic activity within the meaning of VAT legislation, which only targets persons who pursue income in an organised and sustainable manner.

However, it is essential to ensure that this classification as a private individual is maintained in practice. In our practice, we regularly observe that the tax authorities closely examine situations in which private individuals sell works of art with a certain regularity, for example in the context of renewing a collection. We thus see cases where individuals sell their existing art collection in whole or in part every few years in order to acquire new works. Although this at first sight may still fall within the private management of an art collection, in certain cases the administration considers that this no longer constitutes a purely private activity, but rather an economic activity within the meaning of VAT. In that case, the seller may still be regarded as a VAT taxable person, with the consequence that VAT is due on the sales. This entails a significant tax risk, since a reclassification may lead to additional assessments, interest and administrative penalties. It is therefore advisable to carefully analyse such transactions and, where necessary, to have them assessed in advance.

Rental, provision and mediation of art: always 21 percent VAT

It is important to emphasise that the rental or provision of works of art is not regarded as a supply of goods, but as a service. Therefore, the standard VAT rate of 21 percent in principle always applies, even after the reform of 2025. This has concrete consequences in practice.

When an artist or a gallery rents artworks to a company, for example to decorate offices or reception areas, the rental constitutes a VAT taxable service at 21 percent. In most cases, the lessee can deduct this VAT if he himself carries out taxable economic activities. The provision of exhibition space by a gallery owner, whether or not combined with additional services such as lighting, security, reception or mediation, is also often regarded by the tax authorities as a single complex VAT taxable service at 21 percent on the total remuneration.

Mediation by a gallery, whereby the dealer acts as a broker and receives a commission without acting as the seller himself, is also subject to the standard rate of 21 percent on the commission. The reduced rate of 6 percent is therefore strictly reserved for the actual supply of the artwork and does not apply to rental, venue rental or brokerage services.

Sale of art abroad

For international transactions, specific rules apply which depend strongly on the destination and the status of the buyer. In the case of a sale to a private individual in another EU Member State with dispatch or transport of the work, VAT is in principle due in the country of arrival, at the rate applicable there, via the One Stop Shop scheme. This presupposes correct application of the OSS obligations and conclusive proof of transport. Where the seller applies the margin scheme, however, Belgian VAT on the margin remains due, namely 21 percent on the profit margin.

The reform of 2025 has further tightened these rules. For example, the margin scheme may no longer be applied where the artwork has been purchased in Belgium with 6 percent VAT. In that case, upon sale to an EU private individual with dispatch, the trader must charge the VAT of the country of destination on the full price under the standard scheme, while being able to deduct the 6 percent on his purchase.

In the case of B2B sales to a VAT liable entrepreneur in another EU Member State who transports the work himself or has it transported in his own name, the transaction qualifies as an intra-Community supply. Subject to compliance with all formalities, including a valid VAT number of the customer and sufficient proof of intra-Community transport, the Belgian seller may issue an invoice with 0 percent VAT. In practice, the proof of transport is often a point of discussion. Where the seller applies the margin scheme, however, this exemption does not apply and Belgian VAT on the margin remains due.

In the case of export of artworks to countries outside the European Union, the zero rate applies, provided that the necessary export and transport documents are retained. Here too, proof is essential. In the absence thereof, the exemption may be refused. In that case, the Belgian supplier retains the right to deduct the VAT charged on the purchase and the ancillary costs.

The margin scheme for art dealers: what remains after the reform?

The margin scheme constitutes a special VAT scheme which applies exclusively to taxable resellers, namely art dealers and galleries that purchase artworks with a view to resale. Under this system, VAT is not levied on the full sales price, but only on the profit margin, being the difference between the sales price and the purchase price. This VAT is due at the standard rate of 21 percent and is not separately stated on the invoice. The scheme aims to prevent goods on which no deductible VAT previously rested, for example upon purchase from private individuals, from being fully subject to VAT again upon resale.

For artists themselves, this scheme is in principle not relevant when they sell their own works to dealers or galleries. In that case, they do not act as resellers, but as producers of the artwork. The sale of their own works that qualify as works of art takes place under the standard scheme at the reduced VAT rate of 6 percent on the full sales price, with in principle a right to deduct professional expenses. The margin scheme only comes into play where an artist also purchases works from third parties with a view to resale, for example in the context of a gallery activity. In that capacity, he is considered a reseller for those transactions.

Since the reform of 31 December 2025, the scope of the margin scheme has been significantly restricted. Although the reduced rate of 6 percent now in principle applies to all supplies of works of art, the margin scheme remains possible only for works purchased without VAT, such as from private individuals or under the margin scheme from another reseller. Where an art dealer purchases a work applying the reduced rate of 6 percent, for example directly from an artist, the margin scheme is excluded and the resale must take place under the standard scheme, with 6 percent VAT on the full sales price and a right to deduct the VAT paid.

The choice and correct application of the VAT regime requires particular attention in practice, since errors in the qualification of the transaction or in the application of the margin scheme may lead to significant tax corrections.

We wish to emphasise that the margin scheme does not constitute a status applicable to the taxpayer as such, but a special VAT scheme that can be applied per individual transaction. This implies that a reseller can in principle assess for each artwork whether to apply the margin scheme or the standard scheme, provided that the statutory conditions are met, in particular with regard to the manner in which the work was acquired.

Practical consequences

For private individuals and collectors, the reform in many cases results in a certain simplification in the sense that 6 percent VAT is often charged upon purchase. However, this simplification is relative, since the tax treatment continues to depend on the qualification of the work and the applicable VAT regime. Where a trader applies the margin scheme, no separate VAT appears, but for private individuals this has no impact on the right of deduction.

Artists continue to benefit from the reduced rate on their direct sales, while rental remains subject to 21 percent. Galleries and art dealers are faced with a greater need for documentation and a correct choice of the applicable regime, in particular with regard to the margin scheme and international transactions.

Conclusion

The VAT reform for artworks, collectors’ items and antiques as from the end of 2025 leads to greater uniformity of rates, but cannot be regarded as a simplification. The practical application remains dependent on qualification, evidence and correct compliance with the different regimes.

Errors in the application of the margin scheme, the classification of a work as a work of art or the substantiation of evidence in cross-border supplies may lead to additional assessments, interest and penalties.

Our specialised tax lawyers are ready to assist you in concrete cases, including due diligence in the purchase or sale of important artworks, optimisation of the VAT structure of your gallery or collection, guidance on international transactions or disputes with the tax authorities. Please feel free to contact us for a no obligation consultation. We help you to apply the new rules in an optimal and risk free manner.

About Arx Aurum

Arx Aurum Lawyers has extensive experience in VAT matters relating to art, both in advisory work and in discussions with the tax authorities. We regularly act in cases in which the classification of artworks, the application of the margin scheme or the VAT treatment of national and international transactions is at issue.

This subject matter requires not only a thorough knowledge of the legislation, but also considerable practical experience in dealing with the tax authorities. If you would like to have your situation analysed or if you have doubts about the correct VAT treatment of a specific transaction, you are always welcome for a no obligation introductory meeting.