Art transactions / Freeport / Lawyer Paymaster
Since the 1st of September 2014, a bill of law aims at promoting the new Freeport of Luxembourg and developing the Luxembourg art market notably by extending the tax regime of the profit margin to organisers of sales by public auctions and by exempting certain goods and services from VAT.
The VAT-free zone regime increase Luxembourg’s competitiveness in the logistics sector by positioning Luxembourg as a storage and warehouse site for high value goods, such as art. The Bill introduces the possibility for organisers of sales by public auction to benefit, upon option, from the profit margin VAT regime for the supply of second-hand goods, art works, collectors’ items and antiques. The goods placed in a free zone will benefit from an exemption from VAT.
PL&A is a legal adviser in art transactions and lawyer paymaster, with more than 19 years of experience in business transactions. As paymaster, PL&A will receive fees in escrow by buyers in a large transaction, and disburse to the sellers and brokers on the transaction. In return for the service, PL&A charges a small fee, which is paid out of the commission proceeds prior to disbursement.