Why tax leverage may be the key
Two central issues: the strategic role of fairs and the proposed law to reduce VAT on works of art
3' min read
3' min read
In recent months, the debate around the art market in Italy has become more lively, stimulated by two central issues: on the one hand the increasingly strategic role of fairs as a hub of exchanges and relations, and on the other the proposed law to reduce VAT on works of art. Marilena Pirelli, in the pages of 'Plus24', recently drew attention to these issues, opening up a reflection that involves both the fiscal and the cultural and systemic spheres.
The new Artsy report, Art Market Trends 2025, the result of an international survey involving over 1,600 collectors and gallery owners, also raises the issue. Among the most significant data, a critical node emerges: collectors consider the market to be non-transparent, particularly in the determination of prices and the commercial policies of galleries. Sixty-nine per cent of respondents said they had given up buying a work because of the lack of transparency, while only 5% perceived the market as truly open and accessible. Perhaps the most telling figure is that works with a visible online price are six times more likely to be sold than those with no price indication.
This picture shows a systemic imbalance. Galleries recognise the importance of transparency for their customers (62% say so), but more than half have not taken steps to improve it during 2024. Only 44% regularly publish prices online, while a further 25% only communicate them on request.
In this context, the proposal to reduce VAT on works of art should not be read solely as a fiscal intervention. It can and should represent an opportunity to stimulate a cultural and operational evolution of the entire sector. Tying the tax relief to minimum transparency criteria - for example, the obligation to display the price and its composition (including or excluding VAT, any commissions, transport costs) - would mean promoting a more accessible and readable market for operators, new buyers and institutions.
Addressing the issue of transparency also implies recognising the critical nature of the tools currently used to evaluate works. Almost all price analyses are based on public auction data, which are easily accessible but only partially representative. A distinction should be made here between platforms and economic indices.
