VAT for visual artists

You must estimate if your sales will exceed the EUR 15,000 limit. If you exceed the limit for sales subject to VAT during the year, you must pay VAT for all sales during that year. 

To apply for VAT registration, you must set up a business ID. You can find instructions on how to apply for VAT registration on the Tax Administration website. 

VAT liability means that you must file both your pre-completed tax return and your VAT return. 

If proceeds from your sales exceed EUR 15,000 but are below EUR 30,000, you can request VAT relief. You can find more information on the VAT relief scheme on the Tax Administration website and in the Finnish Value-Added Tax Act. 

Selling your artwork and VAT

When proceeds from your yearly sales are less than EUR 15,000, you are not liable to pay VAT for these sales. This means that the VAT rate for your artwork sales is 0%. 

When you exceed this limit, you have to add VAT to your prices. VAT on works of art is either 10% or 25,5%. 

The lower 10% VAT rate applies to the sale of works of art that take place in Finland when a seller of the work is liable for VAT and is: 

• the author of the work of art, 
• the author’s rightholder (e.g., an heir), 
• a dealer working in the name of or on behalf of the author, or 
• a self-employed person who occasionally sells art (not a reseller). 

The following are considered works of art under VAT rules: 

• Pictures, collages, paintings, drawings and pastels executed entirely by hand by the artist. (Construction plans and drawings, technical drawings, and other plans and drawings for industrial, commercial, topographical or similar purposes are not considered works of art.) 
• Original engravings, prints and lithographs, meaning impressions produced directly, in black and white or in colour, of one or several plates wholly executed by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process. 
• Original sculptures and statuary, in any material, provided that they are executed entirely by the artist, and sculpture casts of which production is limited to eight copies and supervised by the artist or his or her successors in title. Mass-produced reproductions or works of craftsmanship of a commercial nature are not considered works of art. 
• Tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more than eight copies of each. 
• Photographs taken by the artist, printed by him or her or under his or her supervision, signed and numbered and limited to 30 copies, all sizes and mounts included. This also includes photographs taken under the artist’s supervision. 

The general VAT rate of 25,5% is applied to the sales of all works of art, excluding the first sale of works of art as defined above and the resale of all works of art. This means that the VAT rate is 25,5%, for example, for media art, installations and photographs with more than 30 copies. 

Fees paid to performing artists are exempt from VAT. This means that no VAT is levied on performance arts. Copyright remunerations are also, for the most part, VAT exempt. 

There are different VAT rules for sales and purchases within the EU and to or from a third country. See Tax Administration website for more information: VAT on imports, exports and EU commerce (vero.fi) 

Calculating VAT 

VAT is calculated by adding VAT to the net price of a product or service. If the agreed price of a work of art is displayed without VAT (usually expressed as ‘VAT 0%’ after the price), the VAT is calculated as follows: 

VAT 10%: agreed price (VAT 0%) x 1.10 = price including VAT 
VAT 25,5%: agreed price (VAT 0%) x 1.255 = price including VAT 

Sometimes, the total price paid by the customer is displayed inclusive of VAT. This is usually expressed as ‘incl. VAT’ after the price. In this case, the VAT is calculated as follows: 

VAT 10%: agreed price (incl. VAT)/1.10 = price without VAT 
VAT 25,5%: agreed price (incl. VAT)/ 1.255 = price without VAT