The growing interest in works of art (as well as investment coin) inspired us to take a closer look at a new, taxpayer-friendly individual interpretation by the Director of National Tax Information, in which he assessed – in the context of VAT taxation – the effects of the sale of collectibles inherited by the applicant (0113-KDIPT1-2.4012.745.2025.4.AJB).

From generation to generation – works of art in succession planning

Works of art – not only fine arts (painting, sculpture), but also applied arts (furniture, numismatics) – regardless of their purely aesthetic and sentimental value – are valuable investment assets. As they are characterised by relatively high prices and low liquidity (the circle of potential buyers is limited to sophisticated connoisseurs), they are often included in the estate. The changing tastes of collectors from generation to generation may prompt the sale of items in the family collection. Such sales, like all transactions on the market, raise questions about their tax implications.

Inheritance of works of art, sale of collectibles and VAT

When analysing the tax consequences of the sale of works of art, it is worth bearing in mind the specific nature of this market segment. The line between private (personal, C2C) and business (B2B, B2C) transactions is often blurred, especially when an entrepreneur operating in many sectors and using various capital investment channels invests in works of art and collections.  The problem becomes particularly apparent in the context of sales made through popular auction portals. In this case, assessing whether a specific sale of a work of art or collectible item constitutes a business activity or the management of private assets is crucial for the application of tax law (we discuss the consequences in terms of PIT on our blog: https://lexplorers.pl/czy-prywatny-kolekcjoner-zaplaci-pit/).

To correctly apply the regulations on the taxation of sales of works of art and collectibles, it is necessary to understand the specific, not very intuitive terminology used by the legislator.  We discuss the concept of a “collectible item” under the VAT Act in our blog article: https://lexplorers.pl/czy-w-prywatnych-muzeach-sa-przedmioty-kolekcjonerskie/.

Gold in inheritance: VAT on the sale of coins from inheritance (tax ruling 0113-KDIPT1-2.4012.745.2025.4.AJB)

A taxpayer – an entrepreneur running a sole proprietorship in the field of, among others, trading in precious metals, who also holds shares (as the president of the management board) in capital companies dealing in the sale of numismatic items, gold bars and packaging for these goods – submitted a request for an individual interpretation to the Director of National Tax Information. The taxpayer inherited from his father, who was the owner of a numismatic shop before his retirement, a collection of gold and silver investment and collector coins, works of art and other collectibles. It is worth noting that his father, the testator, also held shares in the companies run by the applicant.

In his question to the National Revenue Administration, the taxpayer sought to determine whether the planned sale of assets acquired through inheritance would constitute a commercial activity referred to in Article 15(2) of the VAT Act, and thus whether the applicant would act as a VAT taxpayer in respect of the planned sale. The sale would take place through an auction house or an internet portal. The applicant emphasised that he had not entered the inherited items into the fixed asset register of the companies in which he held shares, or into his sole proprietorship; however, he did not rule out the possibility of using the proceeds from the sale of the collection items to recapitalise these companies. Consequently, the entrepreneur maintained that the sale of collectibles at auction houses or on internet portals would fall within the scope of private asset management and would not result in VAT taxpayer status. Although the testator was also professionally involved in trading in numismatic items, the heir’s activity does not constitute a continuation of the testator’s activity, as at the time of his death, he was no longer an entrepreneur and the collection belonged to his private property.

A collector sells only once: when will the sale of works of art (collectibles) not be subject to VAT?

The National Revenue Administration considered the taxpayer’s position to be correct. In justifying this decision, the authority referred (also appearing in the applicant’s argumentation) to the fact that the taxpayer does not intend to purchase further items of this type for resale after the sale of the collection, which would deprive his activities of their “continuity”. This means that the entrepreneur will not meet the definition of a VAT taxpayer – the sale of collectibles will fall within the scope of private asset management.

Inheritance of works of art, sale of collectibles and taxes

The individual interpretation discussed is favourable to the taxpayer – and surprisingly so. While the interpreting authority has already tended to agree with the position of taxpayers who treat sales on auction portals as outside the scope of business activity (as part of the management of private assets), in the case under analysis, the matter concerned a businessman operating in the numismatic industry, presumably the successor to an entrepreneur from the same market sector (albeit operating in different legal forms and, presumably, on a different scale), and the separation of the private and business spheres was therefore not obvious, especially given that the heir allowed the companies to be recapitalised with funds from the sale of, for example, investment and collector coins. The assumption that the sale described in the application will not constitute economic activity under the VAT Act is an expression of the liberal approach of the tax authorities.

Succession planning: inherited businesses and inheritance of art collections

Due to the value of works of art and collectibles, trading in such assets requires in-depth analysis not only in terms of determining their cultural role and conducting an adequate valuation, but also precisely defining the rights and obligations imposed on the owner of these assets by law. These issues are discussed by GWW experts in a special report entitled The collector’s treasure: a legal and tax guide for connoisseurs of fine arts, applied arts and historic motor vehicles, available on our website: https://gww.pl/skarb-kolekcjonera-przewodnik-prawno-podatkowy-dla-milosnikow-sztuki-i-unikatowych-przedmiotow/.

In view of the challenges of the modern world, the issue of access to weapons, including the inheritance of firearms, is attracting increasing interest. We discuss this issue in a separate blog post on lexplorers.pl: https://lexplorers.pl/strzelba-po-dziadku-dziedziczenie-broni-o-posiadaniu-broni-do-celow-pamiatkowych/.