Italian galleries urge VAT cut or face closure crisis

The Italian National Association of Modern and Contemporary Art Galleries (ANGAMC) has sent a letter to Culture Minister Dario Franceschini, warning that 45% of Italian galleries may close or relocate abroad due to tax burdens, bureaucracy, and unfair competition. The association urges the minister to support a German proposal to apply reduced VAT rates to art trade, presented by German Culture Minister Monika Grütters at the EU Council on May 18, 2021. The EU art market currently lags behind the US (42% market share) and China (28%), with Italy below 1%. ANGAMC president Mauro Stefanini argues that reduced VAT would boost the entire art ecosystem, benefiting artists, galleries, museums, and private collectors. The letter follows a FEAGA request and highlights that galleries are essential for discovering artists and resisting the 'Amazon-ization' of art commerce. Without intervention, the sector faces collapse, threatening artists' livelihoods and cultural heritage.