Photo by Steve Johnson on Unsplash
What you need to know as a seller
When you buy a piece of art, you are supporting the artist (or their successor/s) who created the work. Whatever the reason for your original purchase, each resale of the artwork signifies an additional appreciation for that artwork.
If that piece of art has a resale value of over $2000 NZD, the Artist Resale Royalty Scheme may apply.
Payment threshold:
The Artist Resale Royalty Scheme does not apply to resales where the resale value is less than $2000 NZD.
What resales might it apply to:
The Scheme applies to “qualifying resales”. This means the resale value is over $2000, and the resale involves an NZ art market professional (or certain other entities like publicly funded art galleries). See our website for a full checklist.
If the Scheme doesn’t apply to your resale, sellers and buyers can still agree to benefit the artist and opt-in to the Scheme – this is called a ‘voluntary qualifying resale’.
Who pays the royalty:
The following TWO persons are jointly and severally liable to pay the 5% resale royalty to RRA:
1) The seller.
and
2) The seller’s agent (usually an Art Market Professional). If the seller has no agent, then it is the buyer’s agent. If there are no agents, then it is the buyer.
Further Assistance
For any questions on how the royalty deduction applies to your resale, please contact your auction house or gallery.
For more details, please get in touch via our website.
Thank you for your co-operation. This Scheme is an important part of protecting artists’ legacy over time and supporting the growth of Aotearoa New Zealand’s vibrant art community.