THE QUESTION ALL ARTISTS ASK

"Why is it MY responsibility to manage VAT when I sell on a marketplace like Amazon or Etsy?"

This question is legitimate and comes up very often. You are right to ask, because since 2021, major marketplaces (Amazon, eBay, Etsy) collect VAT on behalf of sellers for certain products.

BUT: Original artworks sold by their creator benefit from a COMPLETELY DIFFERENT regime.

This page explains IN DETAIL why ARTEDUSA does not pay VAT, why YOU are liable, and how the money flow works.

THE SPECIAL REGIME FOR ARTWORKS (Article 297 A of the French General Tax Code)

In France and the European Union, original artworks benefit from a DEROGATORY tax regime.

Article 297 A of the French General Tax Code: Original artworks sold by their CREATOR remain under the artist's VAT regime, not the marketplace's.

European Directive 2006/112/EC (Article 311): Member States may apply a special regime to artworks. France applies it.

IN PRACTICE: Whether you sell directly from your studio, on your own website, or through a marketplace like ARTEDUSA, YOU are ALWAYS the one liable for VAT.

WHY THIS REGIME EXISTS: Artworks are not manufactured products. They are unique creations. The State considers that the artist-creator must retain tax control over their sales, just as a doctor or lawyer retains control over their fees.

ARTEDUSA = PURE INTERMEDIARY (NOT A RESELLER)

The difference between ARTEDUSA and Amazon/Etsy lies in the legal nature of the platform.

ARTEDUSA NEVER takes possession of your artworks: Your artworks remain in your studio until they are sold. ARTEDUSA has no stock, no warehouse.

ARTEDUSA does NOT set the prices: YOU decide the sale price. ARTEDUSA cannot modify your price.

ARTEDUSA charges a 15% commission: This is competitive compared to other platforms (30-40%). This commission covers Stripe fees and platform costs.

YOU issue the invoice: It is your name that appears on the client invoice, not ARTEDUSA. You sell in your own name.

LEGAL STATUS: ARTEDUSA is a simple technical facilitator, like Leboncoin. We connect buyers and artists, but we do not intervene in the commercial transaction.

TAX CONSEQUENCE: Since ARTEDUSA is not the seller, ARTEDUSA CANNOT be liable for VAT. This is the law.

EU DIRECTIVE 2021: WHY OTHER MARKETPLACES COLLECT VAT

Since July 1, 2021, European Directive 2021/1159 requires marketplaces to collect VAT for certain products.

COVERED PRODUCTS: Clothing, electronics, furniture, toys, non-EU imported products, manufactured products in general.

EXCLUDED PRODUCTS: Original artworks created by the artist, professional services (consulting, medical), real estate.

WHY THIS DIRECTIVE: The EU wanted to fight VAT fraud on products imported from China sold via Amazon/eBay. These marketplaces became "deemed sellers" for these products.

ARTEDUSA IS NOT AFFECTED: This directive does NOT apply to original artworks. The special art regime (Article 311 of the VAT Directive) takes precedence over the 2021 directive.

IN SUMMARY: Amazon collects VAT because they sell manufactured products. ARTEDUSA does NOT collect VAT because you sell original artworks. This is not a choice, it is the law.

MONEY FLOW: WHO PAYS WHAT, WHO RECEIVES WHAT

Let's take a concrete example: You sell an artwork for EUR 1,000 excl. VAT. You are subject to VAT (revenue > EUR 36,800/year).

STEP 1 - THE LISTED PRICE: Your artwork is listed on ARTEDUSA at EUR 1,000 excl. VAT, i.e. EUR 1,200 incl. VAT (20% VAT).

STEP 2 - THE PURCHASE: A client buys your artwork and pays EUR 1,200 incl. VAT via Stripe.

STEP 3 - STRIPE PAYMENT: Stripe collects EUR 1,200 incl. VAT and deducts its fees (approximately 1.5% = EUR 18). Stripe pays you EUR 1,182 to your Stripe Connect account.

STEP 4 - BANK TRANSFER: Stripe Connect transfers EUR 1,182 to your personal bank account (timeline: 7 days after delivery).

STEP 5 - YOUR TAX OBLIGATION: Of the EUR 1,182 received, EUR 200 is VAT that you must remit to the State in your quarterly return. Your actual net income = EUR 982 excl. VAT.

ARTEDUSA IN ALL THIS: ARTEDUSA takes 15% of the excl. VAT price (EUR 150 of EUR 1,000). Neither the VAT (EUR 200) nor the Stripe fees are charged to you. You receive 85% of the excl. VAT price (EUR 850).

THE CLIENT PAYS THE VAT: It is the client who pays the EUR 200 VAT by purchasing at EUR 1,200 incl. VAT. But it is YOU who must remit it to the State, not ARTEDUSA.

VAT EXEMPTION: IF YOU EARN LESS THAN EUR 36,800/YEAR

If your annual artistic income is BELOW EUR 36,800, you benefit from the basic VAT exemption (franchise en base de TVA).

IN PRACTICE: You do NOT charge VAT. An artwork at EUR 1,000 = EUR 1,000 flat (no VAT).

ON THE INVOICE: Mandatory mention 'VAT not applicable - Article 293B of the French General Tax Code'.

YOU REMIT NOTHING: You have no VAT return to file. You keep 85% of the price (15% commission).

WATCH THE THRESHOLD: If you exceed EUR 36,800 during the year, you become subject to VAT from the first euro of the following month. You must then charge VAT and remit it.

ARTEDUSA ADAPTS YOUR INVOICES: As soon as you declare your VAT status in your ARTEDUSA profile, we automatically adapt your invoices (with or without VAT).

COMPARISON WITH OTHER MARKETPLACES

Here is a comparative table to help you understand:

AMAZON (clothing, electronics): The marketplace collects VAT since 2021. The seller receives the amount excl. VAT. Amazon remits the VAT to the State.

ETSY (jewelry, decor, crafts): Etsy sometimes collects VAT for cross-border EU sales. The seller receives the amount excl. VAT.

EBAY (various products): eBay collects VAT for B2C professional sales since 2021.

LEBONCOIN (second-hand goods between individuals): No VAT. Sellers are individuals, not professionals.

ARTEDUSA (original artworks): Does NOT collect VAT. The artist remains the sole liable party, in accordance with the special art regime.

KEY DIFFERENCE: Amazon/Etsy/eBay sell manufactured or imported products. ARTEDUSA sells original artworks created by the artist. The tax regime is DIFFERENT.

YOUR OBLIGATIONS IN PRACTICE

If you are subject to VAT (income > EUR 36,800/year), here is what you need to do:

1. OBTAIN AN INTRA-COMMUNITY VAT NUMBER: Request from the Business Tax Office (SIE). Free. Timeline: 2 weeks.

2. DECLARE YOUR VAT STATUS ON ARTEDUSA: In your artist profile, 'Tax Information' section, indicate that you are subject to VAT. ARTEDUSA will automatically adapt your invoices.

3. VAT RETURN: Every 3 months (or every month if revenue > EUR 4 million), you must file a CA3 return on impots.gouv.fr. You report the collected VAT (from sales) and the deductible VAT (paid on your professional purchases).

4. VAT PAYMENT: You remit the balance to the State. Example: Collected VAT EUR 2,000 - Deductible VAT EUR 300 = EUR 1,700 to pay.

5. RECORD RETENTION: Keep all your ARTEDUSA invoices for 10 years. They serve as proof of collected VAT.

HELP: If this is complex, use a certified accountant specializing in artists. They will handle everything for you (cost: approximately EUR 100-200/month).

WHY ARTEDUSA CANNOT HANDLE THIS FOR YOU

We are often asked: 'Why can't ARTEDUSA collect and remit the VAT on my behalf to make my life easier?'

ANSWER: It is PROHIBITED by law. Here is why:

1. ART TAX REGIME: Article 297 A of the French General Tax Code requires that the artist-creator remains the VAT liable party. ARTEDUSA cannot become liable on your behalf, even if we wanted to.

2. YOU SELL IN YOUR OWN NAME: It is YOUR name that appears on the client invoice. From a tax standpoint, it is YOU who are selling, not ARTEDUSA. We cannot remit a VAT that we did not collect in our name.

3. TAX LIABILITY: If ARTEDUSA collected VAT on your behalf, we would become responsible in case of errors or tax audits. This is an enormous legal risk.

4. INDIVIDUAL SITUATIONS: Some artists benefit from the VAT exemption, others are on the standard regime, others have reduced rates (books, music). ARTEDUSA cannot manage 10,000 different tax situations.

5. TAX AUDITS: In case of a tax audit, it is YOU who are audited, not ARTEDUSA. You must be able to justify YOUR VAT, not that of a marketplace.

CONCLUSION: The current system (you manage your VAT) is the ONLY legal system for original artworks. ARTEDUSA cannot do otherwise.

HELP: ARTEDUSA TOOLS TO SIMPLIFY YOUR LIFE

Even though ARTEDUSA cannot manage VAT on your behalf, we provide you with tools to make the task easier:

1. AUTOMATIC INVOICES: All your invoices are generated automatically with the correct format, the correct VAT, the correct sequential number. Compliant with legal requirements.

2. ACCOUNTING EXPORT: Export all your sales in CSV/Excel for your accountant. Columns: Date, Amount excl. VAT, VAT, Amount incl. VAT, Client, Invoice.

3. ANNUAL SUMMARY: Each year, ARTEDUSA generates a summary of your sales (revenue excl. VAT, collected VAT, number of sales). Convenient for your tax returns.

4. DAC7 REPORT: If you sell to EU clients, ARTEDUSA automatically generates the mandatory DAC7 report (EU Directive 2021/514).

5. AUTOMATIC STATUS: As soon as you declare your VAT status, ARTEDUSA adapts all your future invoices automatically. No more manual management.

GOAL: You only need to download your documents and send them to your accountant. The rest is automated.