France Slashes VAT on High-value Jewelry
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27.01.09, 11:13
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World
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France has slashed VAT on “rare” or “high-value” jewelry from 19.6% to 5.5%. This step is expected to increase the appeal of Paris as an auction center for high-end jewelry.
The customs guidelines now state that the new rate also applies to jewelry “destined for different use from originally intended; special transactions other than the usual trading of similar items; landmarks in the evolution of human craftsmanship; and items illustrating a period of this evolution.”
International head of jewelry at Christie’s, Francois Curiel, who is based in Paris, has requested clarifications from France’s Head of Customs. The lower VAT rate apparently does not apply to “new” jewels, manufactured by a jeweler and consigned immediately to auction. Curiel believes that the law can be interpreted as applying to modern jewelry as long as it is secondhand.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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