Invoicing and declaring taxes on consignment: artist guide 2026

Consignment differs from a direct sale. In direct sales, it's simple: you sell, you invoice, you declare. In consignment, the artwork remains YOUR property as long as it hasn't been sold by the gallery. This nuance changes everything fiscally.

I've seen artists mess up their taxes for 3 years because of this confusion. This guide isn't a substitute for an accountant but gives you the right questions to ask.

You sign a consignment agreement with the gallery detailing the public selling price, gallery commission percentage (40 to 50%), duration of consignment (often 6 to 12 months), and return conditions if unsold.

At this stage, no invoice is issued. The artwork is still yours. The consignment agreement is sufficient.

The gallery invoices the final client. This invoice states the pre-tax artwork price, 5% GST, 9.975% QST, and total after tax. The gallery collects taxes from the client and declares them to tax authorities on ITS return. You are not directly mentioned in this transaction.

Numerical example for a $1,200 post-tax artwork (with roughly 15% GST/QST):

• Public price: $1,200
• GST + QST: $156
• Pre-tax price: $1,044
• Gallery 50% commission: $522
• Your pre-tax share: $522

At this moment, you issue an invoice to the gallery (not to the final client). This invoice states:

• Your name, address, GST/QST number if registered
• The gallery's name as the client
• Title of the sold artwork, sale date
• Your pre-tax share: $522
• If you are GST/QST registered: add 5% + 9.975% on $522 equals $78 in taxes
• If you are not registered: $0 in taxes

According to Revenu Québec, you must register for taxes (GST and QST) if your gross annual income exceeds $30,000 over 4 consecutive quarters. Three situations:

• Income below $30,000/year: optional registration. You don't charge taxes, but you also don't recover them on your purchases.
• Income between $30,000 and $50,000/year: mandatory registration upon exceeding the threshold. You charge taxes and can recover those on your business purchases.
• Income above $50,000/year: mandatory registration and quarterly or monthly declarations.

Before depositing on consignment, demand in writing:

• Precise commission percentage
• Payment delay post-sale (typically 30 to 60 days)
• Artwork insurance coverage during consignment
• Recovery conditions if unsold
• Possible discount policy (and if you authorize the gallery to grant them)
• GST/QST terms: does the gallery pay you on top of your taxes or taxes included

The RAAV template contract is a good reference to adapt.

• Mistake 1, forgetting to ask the gallery for the sales invoice. Without this invoice, your accounting relies on verbal agreements. Systematically request a copy of the client invoice (with client details masked if confidential, but amount and date are essential).
• Mistake 2, declaring the public price instead of your share. You only declare your net pre-tax share (the $522 in the example), not the public price ($1,200). Otherwise, you pay tax on income you never received.
• Mistake 3, mixing direct income and consignment income. Keep 2 separate columns in your accounting: direct sales (where you invoice and collect taxes), consignment sales (where you invoice the gallery for your share).