Taxes for Artists in Ukraine: How to Legally Sell Your Works at Home and Abroad

Modern artists in Ukraine increasingly think not only about creativity but also about how to competently sell their paintings. Selling art is not only a creative process, but also a legal one. Success on the international market is impossible without the right approach to taxes, documentation, and logistics.

Why is it important to formalize sales legally? First, it protects the artist. Legal transactions help defend copyright, substantiate the value of a work, and safeguard you in the event of a dispute. Second, it’s an obligation to the state. Whether you sell a painting domestically or organize art delivery abroad, the tax aspect is always there.

Key questions artists face include:

• what taxes to pay when selling within Ukraine;
• whether it’s beneficial to open an FOP (individual entrepreneur);
• how to properly arrange international art delivery and account for income from foreign buyers;
• whether you can—and how to—send a painting abroad without a certificate;
• how to align tax reporting with the fact of shipping artworks.

In this article, we take a detailed look at taxation for artists—from straightforward transactions with private collectors in Ukraine to international sales and sending paintings by post abroad.

Taxation When Selling Art in Ukraine

Sales to Private Individuals and Through Galleries

The domestic market is the first step for most artists. Selling paintings to private individuals can proceed in two ways:

1. As a private individual. You sign a simple sales contract or even provide a receipt. Income is subject to personal income tax (PIT) at 18% and a 1.5% military levy. That is, if you sell a painting for UAH 10,000, you must pay about UAH 1,950 in taxes.
2. Through a gallery. In this case, the gallery acts as an intermediary. It withholds a commission (often 30–50%) and handles the paperwork. This is convenient for the artist but reduces net income. At the same time, a gallery can operate officially and provide proof of the transaction, which simplifies tax accounting.

Tax Regimes for Artists

The most common way to legalize your activity is to register as an FOP (individual entrepreneur).

• FOP Group 2. Suitable for those selling to private individuals in Ukraine. The single tax rate is fixed (up to 20% of the monthly minimum wage). There is an annual turnover cap—up to UAH 8 million.
• FOP Group 3. A more universal option. The rate is 5% of income (or 3% + VAT). Here you can work with foreign buyers and legal entities. The income limit is up to 1,167 minimum wages per year (over UAH 7 million).

If an artist works without FOP status, the PIT of 18% + 1.5% military levy applies. For occasional sales this is acceptable, but for ongoing activity it’s more advantageous to open an FOP.

Tip: if you plan to sell regularly abroad, it’s more beneficial to register as FOP Group 3. This allows you to officially accept payments from foreign buyers and legally handle foreign currency.

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Selling Art Abroad: Taxes and Rules

How to Send a Painting Abroad from Ukraine

The main question artists ask is how to send a painting abroad from Ukraine correctly and legally. There are two scenarios:

1. A permit is required. If the work was created before 1950, it is considered a cultural asset. To export it, you must obtain a certificate and an export permit from the Ministry of Culture. Without this, the painting will be detained at customs.
2. How to send a painting abroad without a certificate. Contemporary works created after 1950 can be shipped more easily. If the piece does not have cultural-heritage status, no certificate is needed. In this case, it suffices to properly prepare the shipping documents and insurance.

Example: a young artist from Odesa sold a work to Italy. The painting was created in 2021. No permit was required, and he was able to arrange international art delivery through an art logistics firm.

Customs and Tax Nuances

Any art shipment abroad involves passing through customs. At this stage, it is crucial to correctly declare the value of the painting.

• If the work is being sold, indicate the price per the sales contract.
• If the painting is exported temporarily (e.g., for an exhibition), the documents must state that it will return.

For the Ukrainian tax authorities, what matters is not only the physical crossing of the border but also the fact of receiving income from a foreign buyer. Therefore, all payments must be officially declared.

Important: Ukraine has tax treaties to avoid double taxation with many European countries and the USA. This means that with proper documentation you will not pay tax twice—both in Ukraine and in the buyer’s country.

Receiving Payment

In practice, artists receive money via:

• Bank transfers. An official method that immediately records the income. Suitable for working with collectors and galleries.
• PayPal. A convenient tool for online sales; however, its fee is 3–5%.
• SWIFT transfers. Used for large transactions and work with foreign companies.

All foreign-currency inflows must be declared. There is no ban on selling art abroad in Ukraine, but it’s important to correctly report income and pay taxes.

Taxes on Sales of Paintings Abroad

For a Private Individual

If an artist sells a painting as a private individual, income from a foreign buyer is treated as foreign-sourced income. Such income is subject to PIT (18%) and the military levy (1.5%). You must file an annual return and report the foreign-currency receipts.

For an FOP

An FOP Group 3 can accept payments from abroad and pay only 5% of income. This is far more advantageous than the 19.5% total for a private individual.

VAT issues arise if you work with legal entities and provide services. However, in the case of selling paintings, VAT most often does not apply.

Example: an artist from Kyiv sold a painting in the USA for $2,000. As a private individual, he would pay about $390 in taxes. As an FOP Group 3—only $100.

Practical Tips for Legalizing Income

Documents to Confirm the Transaction

To avoid questions from the tax authorities, it’s important to keep all paperwork:

• sales contract;
• invoice;
• deed of transfer/acceptance;
• payment confirmation (PayPal receipt, SWIFT slip, bank receipt).

These documents are useful both for reporting and for protecting your interests in disputes.

How to Send a Painting by Post Abroad and Reflect It in Reporting

Many beginners ask how to send a painting by post abroad and whether such income must be reported to the tax authorities.

A one-off shipment—for example, a gift—does not require complex paperwork. But if you regularly sell works online and send them by post, the tax service will treat this as entrepreneurial activity. In that case, it’s better to register as an FOP and pay the single tax.

Tip: if you sell 2–3 paintings a year, you can operate as a private individual and file a return. If you sell 10–20, you won’t manage without an FOP.

Optimizing the Tax Burden

The most advantageous regime for artists who actively work abroad is FOP Group 3. The 5% rate allows you to save significant amounts.

In addition, an FOP opens up opportunities to:

• work with marketplaces (Etsy, Saatchi Art, eBay);
• sign contracts with galleries;
• officially participate in international grants and support programs.

Frequently Asked Questions (FAQ)

How to send a painting abroad from Ukraine?

To send a painting abroad from Ukraine, you need to prepare the documents, pack the artwork, and choose a carrier. If the work is contemporary and does not belong to cultural heritage, the procedure is simple: a sales contract, packaging, insurance, and handing it over to a courier service or art logistics company. For paintings created before 1950, a certificate from the Ministry of Culture is required.

How to send a painting abroad without a certificate?

Many artists wonder how to send a painting abroad without a certificate. This is possible if the work was created after 1950 and does not have cultural heritage status. In such cases, it is enough to properly arrange the shipment and declare its value at customs.

What does art shipping include?

Art shipping is not just transportation but a whole range of services:

• professional packaging (cardboard boxes, plywood crates, tubes);
• use of protective materials (bubble wrap, corner protectors, foam);
• preparation of customs documents;
• insurance during transportation.

How is international art shipping different from domestic delivery?

Within the country, postal or courier services are usually sufficient. However, for international art shipping, legal requirements apply: export declaration, customs procedures, value confirmation, and mandatory insurance. That’s why art logistics is preferable for international deliveries.

What is the safest way to send a painting abroad?

The most reliable option is specialized art logistics. Professional companies offer plywood crates, climate control, GPS tracking, and insurance. This is more expensive than standard shipping but guarantees the safety of the artwork.

How to send a painting abroad by post?

“How to send a painting abroad by post” is one of the most common questions among beginner artists. Postal services are suitable only for small and inexpensive works (e.g., watercolors or drawings). They have restrictions on size and weight, and insurance coverage is limited. For valuable canvases, it’s better to use specialized international art shipping.

Conclusion

Legal art sales are not bureaucracy for its own sake—they protect the artist in real terms. Properly executed contracts, taxes, and international art delivery help not only avoid fines but also strengthen your reputation on the global market.

Key takeaways:

• In Ukraine, artists can sell either as private individuals or as FOPs. For ongoing activity, FOP Group 3 is more advantageous.
• For export, it’s important to know how to send a painting abroad from Ukraine and when shipment without a certificate is possible.
• Income from foreign buyers is taxable, but double-taxation treaties exist.
• All foreign-currency receipts must be reported, even if you ship the painting by post.

Selling art is not only inspiration, brushes, and canvas. It is also documentation, taxes, logistics, and packing. The more seriously an artist approaches this side of their work, the more successful they become on the international stage.

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