I sell second-hand jewelry on consignment; who is liable for the HBJOAT tax: the consignor or the seller?
Short answer
In a consignment store model, it is the seller (the custodian who carries out the sale) who is liable for the HBJOAT tax, and not the depositor.
How does consignment sales work?
In a consignment sale contract:
- THE depositor (owner of the jewelry) entrusts the item to a professional to sell it in his name.
- THE depositary/seller (jewelry store, antique shop, etc.) sells the item on behalf of the consignor and receives a commission.
It is the distributor who carries out the sale to the end consumer: therefore, it is the distributor who is liable for the HBJOAT tax on the total selling price from the article.
On what basis is the tax calculated?
The tax is calculated on the selling price excluding VAT of the item sold (and not solely on the commission received), at the rate of 0,19 %.
Example: A second-hand gold necklace is sold for €1,000 excluding VAT on consignment. The HBJOAT tax due is: 1,000 × 0.19 % = 1,90 €.
What about the depositor?
The depositor (individual or professional) who entrusts their jewelry for consignment sale is not liable for the HBJOAT tax on this transaction, because it is the depositary who carries out the commercial sale.
Exception: if the depositor is themselves a professional in the HBJOAT sector (manufacturer, retailer) who uses consignment sales as their usual distribution channel, their situation may differ depending on the contractual terms. In this case, it is advisable to check with Francéclat.
Second-hand jewelry: same rules as for new jewelry
It is important to remember that second-hand jewelry made of precious metals or with precious stones is subject to the same taxation rules as new jewelry. The second-hand nature of the product does not entitle you to any exemption.
