At a time of great global uncertainty and concern about Mr. Trump’s protectionist behaviour the Irish art market, though small, offers a ray of consolation. It demonstrates that tariffs don’t always work. Without them America built incredible collections.
Our VAT at point of entry – a tariff – has prevented Ireland’s art market taking any advantage from the fallout of Brexit in the UK. Five years on the gain to our art and antique market from that particular exit has been zilch.
Ireland has gained in finance market terms but the fallout from the damage to London’s status as a global art market hub has not benefited us in the slightest. Even though we are the only remaining English speaking country in the EU that gain has largely gone to France and Germany where VAT rates on art sales have been slashed.
France accounts for over 50% of all European art sales and between 6%-9% of global auctions since Brexit. Germany is next on the list. VAT can have an outsize effect on local art scenes because big hitting international collectors are attracted to countries where VAT rates are lower. In EU member states VAT is notoriously complex. In Ireland most artists will have to charge 13.5% VAT on their work and customs and VAT rates equate to 13.5% on art imported to Ireland.
No matter what the future holds in terms of trade barriers it looks at this stage as if it might not make much of a difference to an Irish art market where imports and exports are drowning in red tape.
View of Toledo by El Greco, one of only two surviving landscapes by the artist, from the collection of the Metropolitan Museum in New York.
Acres of Monets and Manets, wall to wall Picassos and the very best of William Moore Irish 18th century furniture can be found in the US. America does not impose tariffs on the import of art and antiques which contributes in no small measure to the fabulous holdings of European art, sculpture and furniture in American museums and collections.
The lesson of this remains unlearnt in Ireland. The venerable Dublin firm James Adam has noted a decrease in the number of queries from the UK about selling and buying Irish art since Brexit. When they do get inquiries on an artwork of low value the advice to a potential UK seller is to forget about it. Before Brexit this was a much easier process. Nowadays red tape is time consuming, complicated and a turn off.
In contrast to France Brexit has resulted in a shrinkage in the amount of art coming to Ireland from the UK. And it has become very expensive for Irish art purchasers to buy in the UK. They must pay a premium which is usually higher than would be paid in Ireland, deal with exchange rates, artists re-sale rights payable by the buyer and on top of all that 13.5% for art imported into Ireland.
Even if many of us, rightly, condemn the disruption inherent in Mr. Trump’s tariffs in respect of the Irish art market at least Ireland can be accused of throwing stones in a glasshouse.
Portrait of Gertrude Stein by Pablo Picasso at the Metropolitan Museum of Art, New York.
