VAT Invoice requests

This guide is for VAT registered Artists only

Why has the client requested a VAT invoice?

Many of our corporate clients, as VAT registered businesses, can claim back the VAT included in the price of artworks they buy. To do this, they need a record of how much they are entitled to - this comes in the form of VAT invoices.

Why must I create the invoice?

As you're the seller of the artwork, the invoice must come from you. As an agent between you and the customer, we don't pay VAT on the sale of the artwork and therefore aren’t the ones to issue the invoice.

VAT rules vary between countries. If you're unsure on how to proceed after receiving a request for an invoice, do speak to a member of our team. Alternatively. you can seek local advice. For example, if you're an EU seller selling to a customer outside the EU, VAT will not usually be applicable.

I don’t want to make a VAT invoice for an amount I didn’t receive.

The amount we'll ask you to invoice will be the sale price of the artwork, the amount before commission is taken. Paired with the commission statement we send you, the net total will equal the amount you receive from the sale. This is sufficient for your own accounting purposes.

How do I work out VAT?

When we request an invoice, we will specify and ask you to include the item sale price, which is inclusive of VAT.

The amount on the invoice before the grand total must have VAT removed in order to account for the VAT that will be added once the grand total is calculated. This is not as simple as taking away 20%, but there are tools available online to do it for you.

For example, if we request an invoice for a work that you sold for £900, your VAT invoice would break down like this:

Item price: £750 (item price minus VAT @ 20%)

Subtotal: £750

VAT: £150 (20% of subtotal)

Grand total: £900 (subtotal plus VAT)