If you are passionate about art and are wondering how to approach the world of collecting or become an art dealer, know that you are about to embark on an exciting and challenging journey. Art collecting and the art market are in fact complex and constantly evolving universes, which require great passion, a deep knowledge of the works and a great artistic and cultural sensitivity. Sand you have the right passion and are willing to invest time and resources, the art world can offer great satisfaction and personal gratification, as well as representing an interesting investment opportunity.
What happens when it comes to buying and selling works of art for profit? What is the role of the collector, the occasional speculator, or the art dealer in these operations?
Recently the Court of Cassation has established some important sentences that clarify this delicate issue. The first concerns the figure of the collector, defined as someone who acquires works of art for passion, without the intention of reselling them for profit. The second sentence concerns the art dealer, defined as someone who deals with the buying and selling of works of art with the intention of making a profit.
Things are not always as simple as they seem. The collector can also be held accountable for his buying and selling operations if these are carried out with a certain frequency and with the intention of making a profit. Similarly, the art dealer can also take on the role of collector if he purchases works of art for his personal collection.
In short, the distinction between collector and art dealer is not always so clear-cut and things can get complicated if you do not respect the rules and regulations provided by law. But what does it really mean to be a collector or an art dealer? Both figures are important for the art world, but each has its own role and responsibilities.
The collector is an enthusiast who seeks to purchase works of art to broaden his knowledge and personal taste. His motivation is not related to profit, but to the love of art and the desire to share his passion with others. However, the collector must respect the current regulations and the rules of the art market if he wants to avoid legal problems.
The art dealer, on the other hand, is a professional who deals with the buying and selling of works of art with the intent of making a profit. His role is to connect collectors, artists and museums, but also to pay attention to current regulations and the rules of the art market. The art dealer must be able to evaluate the value of the work of art and manage the buying and selling operations in a transparent and correct way.
The Collector according to the Consolidated Law on Income Tax
How do you know if your art collecting or marketing activity is considered professional in the eyes of the law? According to the current doctrine, in order to be able to call oneself an art dealer it is necessary to invest systematically and professionally in art objects., with the intention of making a profit through their subsequent resale. In this case, the buying and selling operations will be subject to taxes such as VAT and will generate business income. But be careful: jurisprudence has clarified that there is no universal definition of “professional collector”, and that each case must be carefully examined based on the specific circumstances and ways of acting in the art market. In other words, to know if your collecting or art market activity is subject to tax, you will have to do a careful analysis of your actions and intentions.
The recent ruling of the Court of Cassation
The 8 March 2023 an important order of the Court of Cassation has been published, the number 6874, which offers a clear and detailed vision of the different profiles of the art world and the consequent tax treatment to be applied.
In particular, three categories can be distinguished: the art dealer, the occasional speculator and the collectorThe first is the one who habitually markets works of art, even without a business organization, in order to profit from the increase in their value. The occasional speculator, on the other hand, is someone who makes occasional purchases of works of art with the aim of reselling them and making a profit.. Infine, a collector is someone who purchases works of art for cultural purposes and to enrich his own collection, without the intent to resell them.
The Court of Cassation also establishes the criteria for identifying the category to which a private seller belongs, including the purpose of the purchase, the frequency of transactions, the duration of ownership and the activity aimed at the sale.
Particular attention is paid to the habitual nature of transactions, a crucial element in determining the figure of the seller. The jurisprudence then identifies the requirements to establish such habitual nature, including the number of transactions carried out, the high amounts, the quantity of subjects involved and the variety of the typology of goods sold.
For collectors, it is important not to fall into the category of the occasional speculator, in order to avoid unforeseen tax consequences. In conclusion, it is necessary to be aware of the different categories of the art world and their related tax treatments, to avoid unexpected risks and penalties.
In short, beyond the occasional speculator, It is the collector and the art dealer who have an important role in the art world; however, everyone must respect the current regulations and market rules. The ruling of the Court of Cassation sheds light on this delicate issue, but it is always important to keep in mind that art cannot be reduced to a simple market value. Art is an experience, a form of communication that goes beyond the price of the work itself. Art is made of emotions, suggestions, stories that tell the society and culture of a certain historical moment.
For this reason, both the collector and the art dealer must have an artistic and cultural sensitivity, as well as a deep knowledge of the art world and its dynamics. Only in this way will they be able to correctly evaluate the value of a work of art and guarantee transparent and correct management of the buying and selling operations.
