Articlaw

Catégorie : artistic

  • The author’s economic rights to his creation

    The author’s economic rights to his creation

    On each work, the author holds a moral right and economic rights.

    The moral right is incessible, perpetual and personal to the difference in heritage rights, while heritage rights are subject to certain conditions.

    Indeed, before any exploitation of the work, the user must obtain written permission from the author and pay the author a remuneration.

    What are the different economic rights?

    Economic rights can be managed by the artist itself or be entrusted to a copyright company that manages on behalf and for the the artist’s account of any exploitation of the work.

    There are three types of economic rights.

    • the right of reproduction which consists of author to authorize or prohibit the communication of his work on any What support and whatever the process;
    • the right of representation which consists of the author to authorize or prohibit the dissemination of his work to the public;
    • the right of follow-up which is consists of a based on a degressive percentage ranging from 4 to 0.25 per cent of the price of sale of original artworks (specific to the art market).

    Reproductive and representation rights are exclusive rights. Only the author can decide whether or not to authorize the use of of his work, unlike collective rights.

    What are the collective rights?

    Collective rights (right to remuneration) relate to certain uses of the work that cannot be managed individually the basis of the author’s exclusive right.

    The law expressly provides for the possibility of entrusting the management of certain uses of the work to copyright companies.

    Remember that collective rights cannot be transferred to a third party. Only the author can receive a financial consideration resulting from exploitation of his work.

    Collective rights may apply to:

    • private copy (remuneration paid on the occasion of a private recording, regardless of the medium)
    • the reprint (photocopy of book or press)
    • TV broadcast

    Contact us via our Form if you want to protect your creations.

  • VAT applicable to works of art

    VAT applicable to works of art

    Any sale of works of art is subject to a VAT regime, which varies according to the quality of the seller and his tax options.

    I bought a work from the artist or his rightful holders …

    Since January 1, 2015, sale of works of art by the artist or his rights holders is subject to a VAT rate whose rate has been reduced to 5.5%. In return, the subject artist will be able to deduct VAT from VAT, the VAT deductible on his acquisitions.

    The importation of work is subject vat rate of 5.5%.

    Artists subject to VAT benefit from the VAT-free scheme and are, therefore, exempt from filing returns and settling this tax, when they have achieved a figure in the previous calendar year tax-free business fees of no more than 42,900 euros.

    The deductible scheme does not apply original works signed by the author and some reproductions signed by the author and numbered.

    The deductible scheme does not does not apply to the sale of other people’s works.

    There are three VAT rates applicable according to the transactions carried out (operations defined in Article 98 A of Schedule III of the General Tax Code), namely:

    • the reduced rate of 5.5% (as of January 1, 2015, cf. Art. 2778-0 bis, I of CGI): – Imports of works of art (from the European Union or not).  – Sales of works of art made by their author or rights holders.
    • intermediate rate 10% (Art. 278 septies and follow-up CGI): – Copyright assignments (heritage rights) – Occasional deliveries of works of art companies that have used them in the course of their business and have been entitled to vat deduction.
    • The standard rate of 20% : – Sales made by a third party (e.g. art gallery, dealer) – The sale of a cultural property not considered a work of art.

    I bought a work in a gallery …

    If the artist has signed a contract to rent the gallery space, the VAT rate will be reduced to 5.5% because he alone pays the marketing costs and sells his works directly to the public.

    If the gallery acts as a intermediary in the sale and collects a commission on sales VAT rate is 20%. VAT is paid by the artist who can in return deduct it from the commission paid to the gallery.

    Note that the tax base is equal to the total amount collected by the gallery.

    Finally, gallery that resells works it has previously purchased from an artist is subject to a 20% VAT rate VAT is calculated on the sale price to the public.

    However, the gallery can request that VAT be collected on the profit margin it collects Realize. The main drawback of the margin VAT regime is the the gallery loses the right to deduct VAT paid on the price purchase of the work.

    When it is difficult to determine precisely the purchase price paid to the seller or when the price is not significant, the VAT tax base can be calculated on a flat-rate margin of 30% of the duty-free selling price.

    Contact us for more information on the challenge of artwork.