Mrs G is a buyer and importer of Asian art. She buys a small number of high value artefacts on buying trips to the Far East and then brings them back to the UK for sale. Her clients are private individuals, and every transaction is different. Sometimes she buys a number of pieces of art in one transaction making them more difficult to value.
HMRC carries out spot checks on imports of art into the UK. The inspector requested the import records and paperwork from Mrs G on specific dates when she returned to the UK from a buying trip as they wished to check the value of the goods. Mrs G had not maintained orderly records to present to HMRC and approached Wise & Co for assistance. In the art world, no two transactions are the same. Factors such as where the artefact was bought, where it was sold, if there was a JV agreement behind the purchase and sale, what the artefact is, can all influence the VAT treatment.
Wise & Co’s VAT consultant worked with Mrs G piecing together the history from the purchase of the artefacts in Asia, their importation to the subsequent sale in the UK, along with the associated paperwork. From this Mrs G was able to present the necessary records to HMRC to satisfy their enquiry. Wise & Co’s VAT consultant was on hand to deal with HMRC’s specific queries and assisted with their resolution.
Wise & Co’s VAT consultant combined her technical knowledge and expertise along with a practical and hands on approach to resolve the situation. She worked with the client to recreate the transaction history, reviewing the paperwork available and reconciling the records for the goods entering and leaving the bonded warehouse to the satisfaction of HMRC.