The Law of 19 December 2025, which entered into force on 31 December 2025, amended the special margin scheme applicable to supplies of works of art, collectors’ items and antiques. These amendments, commented on by the tax authorities in VAT Circular 2026/C/14, form part of the transposition of Directive (EU) 2022/542.
The law redefines the interaction between the reduced VAT rate applicable to the sale of works of art, collectors’ items and antiques and the special margin scheme.
Framework prior to the reform and issues relating to distortions of competition
Before the entry into force of the Law of 19 December 2025, the reduced VAT rate applicable to works of art, collectors’ items and antiques did not have general scope. It was limited to specific situations, primarily direct sales made by artists or their heirs. Sales carried out by intermediaries, such as galleries, auction houses or art dealers, were in principle subject to the standard VAT rate of 21%.
In certain Member States, including Belgium, the reduced rate could also apply to certain imports or intra-Community acquisitions in specific situations provided for by the regulations. In that context, taxable dealers could acquire or import works of art, collectors’ items or antiques subject to a reduced rate, and subsequently resell those goods under the margin scheme.
Where the resale was carried out under the margin scheme, taxation took place definitively in the Member State of departure. The intra-Community acquisition in the Member State of arrival was therefore not subject to VAT.
This mechanism allowed operators established in Member States applying a reduced rate to benefit from a competitive advantage compared to operators established in Member States that did not apply a reduced rate to works of art, collectors’ items or antiques.
It is precisely this situation that the reform seeks to address.
Incompatibility between the reduced rate and the margin scheme as from 31 December 2025
Since the entry into force of the new legislation, the principle is clear: the application of the margin scheme is excluded where a reduced VAT rate has been applied upstream, whether upon importation, an intra-Community acquisition or a domestic purchase.
In such cases, the resale must necessarily be subject to the normal VAT regime, with VAT charged on the full selling price.
In the case of a cross-border resale, this entails an exempt intra-Community supply in the Member State of departure and a taxable intra-Community acquisition in the Member State of destination, subject to the VAT rate applicable in that Member State.
Restricted continuation of the margin scheme
Taxable dealers may still opt for the margin scheme, but only where no reduced rate has been applied upstream and where the goods concerned:
- were imported by the taxable dealer themselves;
- were supplied to them by the author or their heirs;
- were supplied to them by a taxable person other than a taxable dealer.
As soon as a reduced rate (in particular the Belgian rate of 6%) has been applied upon purchase, importation or intra-Community acquisition, the resale must necessarily fall under the normal VAT regime.
Generalisation of the 6% reduced rate under the normal VAT regime
In return for this restriction on the margin scheme, the reform generalises the application of the reduced VAT rate of 6% to supplies of works of art, collectors’ items and antiques carried out under the normal VAT regime.
The reduced rate thus becomes the rule for “ordinary” sales, while it is expressly excluded for transactions subject to the margin scheme.
Practical implications and treatment of existing stock
The new rules apply to transactions for which VAT becomes chargeable as from 31 December 2025. The applicable VAT regime is determined at the time of resale, in accordance with Articles 16 and 17 of the VAT Code.
Works of art, collectors’ items and antiques acquired before that date but still held in stock may no longer be resold under the margin scheme where they were acquired subject to a reduced VAT rate. Their resale must therefore be subject to the normal VAT regime, with application of the reduced rate of 6% to the total selling price.
In this context, where the VAT charged on the acquisition of such goods was not deducted at the time due to the application of the margin scheme, the tax authorities exceptionally allow the right to deduct to be exercised until 31 December 2026 for goods acquired or imported as from 2022, provided that they are resold under the normal VAT regime and that the taxable dealer can provide evidence thereof.
Conclusion
The reform of the margin scheme applicable to works of art, collectors’ items and antiques puts an end to the possibility of combining the application of a reduced VAT rate with recourse to the margin scheme. While the reduced rate of 6% becomes the standard under the normal VAT regime, access to the margin scheme is now strictly conditional. This development requires increased attention when analysing purchase and resale flows, particularly in a cross-border context.
