What is ARR?
The Artist's Resale Right (ARR) entitles artists of original works of art such as paintings and prints to a royalty each time one of their works is resold through an auction house or art dealer.
ARR was recently extended to cover the sale of works by deceased artists up to 70 years after their death. Andipa Editions supports artists receiving ARR.
Who Pays ARR?
It is usual for the buyer to pay this fee and Andipa Editions adds this fee onto your invoice and submits the payment on your behalf. ARR is payable by all buyers no matter where they may be located in the world. As with most EU countries the UK will continue to apply ARR to art sales after Brexit on the 1st January 2021. It is expected that non-EU countries such as the USA will soon join the ARR scheme.
How much is ARR?
The fee incurred for ARR depends on the resale price.
The royalty is worked out according to a sliding scale from 4% to 0.25% and is capped at €12,500 Euros (or GBP equivalent). The fee is initially calculated in Euros and then converted to GBP based on the conversion rate on the day of sale.
Portion of the sale price
From €1,000 to €50,000 Euros
The next €50,000.01 to €200,000
The next €200,000.01 to €350,000
The next €350,000.01 to €500,000
Anything above €500,000
Royalties are calculated on the sale price for galleries and dealers and the hammer price for auction houses, excluding VAT.
Please note: this scale is cumulative, which means that where the sale price is higher than the first threshold, the royalty on each portion of the price is calculated accordingly, for example, an artwork that sells for €210,000. The first €50,000 would be subject to 4% (€2,000), the next €150,000, 3% (€4,500), and the final €10,000 at 1% (€100). Therefore the total royalties due would be €6,600 Euros and then converted to GBP.
Who are DACS?
DACS are the body responsible for the collection of ARR fees. Founded in 1984, the organisation assists artists in collecting fees for the sales of their works. There is also another collection agency called ACS. However, none of Andipa's selection of artists are represented by them.
Which nationalities are subject to ARR?
DACS collects ARR royalties in relation to sales of works by artists who are nationals of the UK or nationals of countries in the European Economic Area (EEA). The following countries are in the EEA:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom.
For more information on Artist's Resale Rights and DACS, please visit https://www.dacs.org.uk/ and their dedicated page on ARR https://www.dacs.org.uk/for-artists/artists-resale-right