Can my client be exempt from tax when selling his jewelry?

Yes, in some cases, your client may be completely exempt from the flat-rate tax on precious objects. Here are the two exemption situations you should be aware of.

Exemption 1: sale to a public body

Sales made to certain public bodies are automatically exempt from the flat-rate tax. These include:

• National museums or listed museums
• Public libraries
• State Property Services

In practice, this exemption does not apply to purchases made in traditional jewelry stores. It mainly applies to direct sales to institutions.

Exemption 2: ownership for more than 22 years (capital gains regime)

Your client can opt for the capital gains tax regime instead of the flat-rate tax, provided that the date and price of acquisition of the jewelry or watch can be justified.

In this context, a progressive reduction is applied to the capital gain realized: If the item has been held for more than 22 years, the exemption is total..

To benefit from this scheme, the client must:

• Provide an invoice or any document proving the original purchase date and price.
• Complete form no. 2092 (instead of form 2091 for the flat-rate tax)

What you need to ask the client

During the buyout, if your client wishes to benefit from the capital gains tax regime, ask them:

• There original purchase invoice jewelry or watch
• Or any other document attesting to the date of acquisition (inheritance, notarized donation, etc.)

Without supporting documentation, the customer is automatically subject to the flat-rate tax (form 2091). Remember to note in Jewely whether the customer provided supporting documentation, in order to keep a record of the transaction.