Is the artist liable for VAT? When the sales proceeds from works of art exceed EUR 10,000 in a given year, the artist is liable for value-added tax for the sales. The artist will then need to register for VAT liability. The artist charges the buyer for VAT and then disburses that amount to the tax authorities. The artist him- or herself must assess whether sales exceed the EUR 10,000 limit. If the sales threshold for an artist’s VAT liability…
TAXATION OF AN ARTIST ENTREPRENEUR When an artist receives his or her primary income from the sale of artwork, he or she is usually taxed in accordance with the Business Tax Act. In such a case, the artistic activities are comparable to normal business activities with regard to taxation. In the tax guide for visual artists compiled by the Artists’ Association of Finland, the main focus is on activities handled under the Income Tax Act. However, the taxation principles…
GENERAL INFORMATION ON THE TAXATION OF ARTISTS The Artists’ Association of Finland has compiled a guide in PDF format (in Finnish) on the most important tax instructions for an artist: »Ammattitaiteilijan verotusohjeita» The guide focuses primarily on business operations dealt with in accordance with the Income Tax Act. However, the taxation principles presented can to a large extent be applied also to the taxation of artists taxed in accordance with the Business Tax Act. Selection of the tax act…
THE BUSINESS TAX OR INCOME TAX ACT? Paid work and grants The primary source of income is paid work, such as teaching, and/or a grant The Income Tax Act The sale of artwork is taxed in accordance with the Income Tax Act Sale of artwork If the primary source of income is paid work or a grant, the costs from the sale of artwork can be deducted from the wage income Business activity The primary source of income is…
A fairly significant amount of income for artists in various fields is accumulated from copyright remuneration paid for the use of their works of art. The possibility of receiving copyright-based remuneration for use of artworks is less significant for visual artists than for those in other fields of art. With the exception of works in the audiovisual field and photography, the user of a visual-arts work does not typically pay compensation for use of the work as seen in, for…
A combination work, or ‘compiled work’, is created by combining parts from various elements of multiple art forms. The creator of a combination work has a copyright to the new work he or she has created when the work crosses the threshold for originality. Often in this type of combination work, (music, sound, or image) material is used that falls within the copyright of another person. The creator of the combination work should then ensure that the copyrights of others…
‘The Artist reserves copyright in all works of art. The Gallery may, for the sole purpose of promoting the works of art, photograph them for inclusion in a catalogue or other promotional materials so long as, in each instance, the Artist is credited as the creator of the work and the holder of the copyright. Further, each bill of sale for a work of art shall bear the following legend: All rights belonging to the holder of the copyright shall…
The artist who creates a work of visual art is granted the right to determine what is done with the work. This right covers all types of use and distribution of the work both in its original and in modified form, which also includes using a different method or form of art. Utilisation of rights to someone’s copyrighted work requires permission from the creator. The rights of a creator of an artwork are divided into economic and moral rights. This…
‘Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.’ The UN’s Universal Declaration of Human Rights The person who has created a literary or artistic work has copyright to that work. Establishment of copyright does not require any registration or other procedures. A copyright exists automatically when a person has created a work that crosses the threshold for originality. The original copyright…