Recommendations for exhibiting art, prepared by NBK

If you are planning to host an exhibition it is important to have good agreements in place that govern the relationship between the artist and the exhibition space. If the exhibition space does not have its own contract for this purpose you may use one of the standard contracts that can be downloaded from the link above.

Standard Exhibition Agreement, prepared by the Norwegian Association of Art Societies

Remember that there should always be a binding agreement in place between the artist(s) and exhibitor prior to an exhibition, and that both parties shall keep a copy of the agreement. Many art associations have prepared their own exhibition agreements that are suited to the type of artwork, artists and artistic expressions they represent. Art associations that have not created their own agreement can use the standard form that has been approved by the Norwegian Visual Artists Association (NBK), the Norwegian Association of Arts and Crafts (NK) and the Norwegian Association of Art Societies.

Sales contract, prepared by the Norwegian Association of Art Societies

Remember that a sales contract must be prepared in 4 copies. The buyer, the art association, the artist and the Relief Fund for Visual Artists (BKH, if applicable) shall receive one copy each. Works of art sold for more than 2000 kroner are subject to a 5 % payment to the Relief Fund for Visual Artists.

Artwork Loan Agreement, prepared by the Norwegian Association of Art Societies

A number of art associations keep private collections that can be borrowed on short or long-term conditions by municipalities and businesses. This can be an excellent supplementary income for artists, but remember that you should use a contract that clarifies the roles, responsibilities and terms of the loan. Both lender and borrower shall keep a copy of the agreement.

Customs and value added tax

Visual artists have the right to transport their works across national borders without paying customs fees, according to international agreements. The point of departure for this exception is The Florence Agreement of 1948. It is based on a UNESCO agreement on cultural exchange. Visual art is exempt from customs charges because art is considered a cultural good. This understanding was incorporated into the international framework agreement on trade known as the Brussels Customs Convention.

The Convention was revised on a number of occasions through WTO negotiations. The exception was most recently confirmed in The Istanbul Convention of 1990.The exception principally applies to the presentation of works not to the sale of art, but the agreement also stipulates that visual art can be transported for the purpose of selling it to a certain extent. The international agreements do not address the question of value added tax. VAT is a national sales tax, so the rules for this vary from country to country. The exhibiting enterprise in each country is usually responsible for paying VAT. Problems that arise regarding value added tax usually only occur from the standpoint of a sales exhibition.

Even though international framework agreements of this kind exist, problems can still occur when art crosses national borders. Not all customs agencies or excise officers understand the regulations or local VAT rules, which often creates problems. It is therefore important to plan extra time for shipments so there is time to solve problems that arise. When art is sent to another country it is important to state clearly on the consignment forms that the shipment contains artworks intended for exhibition that will be re-exported to the country of origin after the exhibition is finished. Customs Tariff Position 97.01 governs what kinds of art can enter Norway toll-free. Artwork that can pass through customs toll free is not subject to value added tax charges either, if the artist himself shipped the works. Many transport companies have experience dealing with transporting artworks internationally. Although they can be expensive, these companies are often easier to use than other companies without experience. As a rule, the transport companies usually send transit documents along with the artworks.

It is also advisable for the artist to create a declaration (In English) that states he or she is the creator and owner of the works.

Customs Tariff, Position 97:
http://www.toll.no/templates_TAD/GuideArticle.aspx?id=196118&epslanguage=no
http://www.toll.no/templates_TAD/Tolltariffen/Chapter.aspx?id=278821&epslanguage=no

Customs Tariff, Position 58:
http://www.toll.no/templates_TAD/Tolltariffen/Chapter.aspx?id=262395&epslanguage=no#

The value-added tax regulations
§ 1-3-2. Works of Art
http://www.lovdata.no/for/sf/fd/td-20091215-1540-001.html#1-3-2

The Norwegian Cultural VAT Committee (kulturmomsutvalget)
14.2 Practicing artists
http://www.regjeringen.no/nb/dep/fin/dok/nouer/2008/nou-2008-7/15/2.html?id=503984

Taken from the web pages of the Norwegian Visual Artists Association (NBK)

Remunerations for artistic assignments and project support applications
It is up to the artist as a self-employed business (sole proprietor) to determine what prices he will charge for his services. In addition to the cost of materials, one must also deduce an hourly rate for research and idea development, creation of artworks and managing the project. In addition to being aware of one’s own value, it can be useful to know what other artists earn and understand standard market rates for sole proprietors in Norway. The Competition Act prohibits publishing minimum rates and encourages people to accept only dignified rates for their services. In the absence of this, BKHF has…

ADVICE AND LINKS

Calculate an hourly rate
Frilansweb.no has created a calculator that can help you calculate how much you should be paid by the hour: Calculator

Wages versus commercial remuneration
As any self-employed person does, the artist must also estimate higher pay for commercial jobs and assignments than what a wage earner makes. That is because the self-employed person does not have an employer to pay expenses like office or studio space, holiday pay or insurance – and workers have far more rights than sole proprietors – who even have to pay a higher national insurance contribution! Sole proprietors do not have the right to paid sick leave the first 16 days of illness. 65 % of one’s average annual earnings are covered after day 17. You can read more about the difference between being a wage earner and a self-employed person here.

Employers who pay sole proprietors save money because they do not pay expense like sick pay, holiday pay or employers’ contributions to the national insurance scheme, such as they have to do for wage earners. This amounts to a savings of more than 30%. Sole proprietors have to ask for twice the amount a wage earner receives to cover costs like elevated national insurance contributions, insurance, tools and office/studio space and expenditures.

Performancekunst.no: Remunerations for performance artists
See the state rates for business travel, per-diem and lodging
Recommended rates for paying hourly rates for teaching at institutions for higher education (Please Note! 2004):
– Basic teaching: NOK 310 per hour of teaching.
– Standard teaching: NOK 545 per hour of teaching.
– Special classes: NOK 800 per hour of teaching.
(These teaching rates were listed in the Norwegian government’s Employee Manual for 2004.Since then the average wage increase has been about 5 %. The rates should be considered as rates for wages (including hours of preparation) for hourly-based teaching, rather than fees for sole proprietors. In comparison, the remunerations for lecturing at the Bergen Academy of Art and Design is somewhere between 2000 and 2500 kroner).
NBK members are eligible for membership in the Norwegian Association of Researchers, at a reduced price. These organizations are associated with the labour unions UNIO and LO respectively and thereby have agreements with the state and municipalities. This would be applicable for those persons working within the public school system.

Aspects of remuneration when applying for art project support
It is important to illustrate real costs for exhibiting artwork or carrying out art projects. In addition to the cost of materials, one must calculate an hourly rate for research and idea development, creation of artworks and managing the project. At a more organizational level, it is important to illustrate the distinction between the actual cost of producing art and the total amount of support being applied for or being granted. If one wants to continue receiving support for visual art, the artist needs to have a reasonable idea of what one’s needs are and what overall costs exists.

Relevant rates for committees
This is a list of examples and excerpts from rates and agreements that can form the basis for setting prices:

The Norwegian Association of Visual Artists / Ministry of Culture
Consultants within public art (Sept 2012): 558 kroner/hour.

The State
Remunerations for official committees (2011):Leaders: 475 kroner/hour
Other members: 360 kroner/hour
Remunerations for sole proprietors in state committees:
Work at meetings: 990 kroner/hour
Meeting preparations: 360 kroner/hour
(Suggested rates from the Norwegian government’s Employee Manual for 2011)

Concerts sponsored by the state
For each day of a concert on tour (2007): NOK 2232
(Preparatory work, project preparations etc. come in addition to that)
The Cultural Rucksack in Hordaland has used the national concert rates in some cases as the basis for its rates.

Norsk Forfattersentrum
Minimum rates for assignments in public schools (2011):
Each hour in the classroom (of 30 pupils): NOK 1490
Double-hour in classroom: NOK 1990
Other assignments:
Recitals, up to 30 min.: NOK 1490
Recitals and or participation, beyond 30 min.: NOK 2490

BONO’s wage agreement rates
Norwegian Journalists Association, freelance rates
(Excerpt from the minimum rates for 2008)
Text: NOK 560 an hour (Min. remuneration: NOK 1490)
Photography: Standard remuneration, per image: Starting at NOK 1450
Hourly rates for photo shoots: Up to 2 hours: NOK 1950
Beyond 2 hours: 560 kroner/hour
TV: Finished edited news reports up to 1 min. and 30 sec.: NOK 8540
Finished edited feature reports, up to 2 min. and 30 sec.: NOK 11 000
Hourly rate for TV/radio assignments: NOK 560

Difference between a wage earner and a sole proprietor

The difference has to do with the amount that is paid in remuneration for commercial services rendered, which is higher for sole proprietors than for the wage earner. Sole proprietors charge higher fees because there is no employer to pay expenses for office or atelier space, holiday pay, insurance or employee rights and benefits. Sole proprietors do not have the right to paid sick leave during the first 16 days of illness. 65 % of one’s average annual earnings are covered after day 17.

There is a brochure available that explains these rules in more detail: Arbeidstaker eller selvstendig næringdrivende (Employee or sole proprietors) published by the Norwegian Tax Administration, available here

The brochure will answer the questions you have about sickness benefit s, rights and obligations as a sole proprietors and it provides an overview of the most important rules and regulations.

Parental benefits upon the birth of a child or adoption

Parental leave is a benefit that provides income and time for parents when their child is born or after adoption. Until 1 July 2008, sole proprietors were only entitled to 65 % of their monthly income for parental leave and they were required to draw up a private insurance policy to get the same benefits as wage earners. In Norway, 100 % of income is now paid to everybody. Still, the parent must have been gainfully employed for six of the last ten months prior to commencing leave to be eligible for this money. The law was amended in this regard twice, once on 1 July 2009 and again on 1 July 2011.Since then, even sole proprietors have the right to the parental benefit.

Info from NAV is available here

Unemployment benefits
In order to receive unemployment benefits you must register with NAV as a job seeker and actually search for new employment and end unemployment. Your income from previous years will form the basis for calculating unemployment benefits and other benefits. Unemployment benefits are calculated to give you the best result on income earned the previous calendar year or the average of income earned the previous 3 calendar years before unemployment benefits are requested (2013). As a rule, you must be willing to accept work anywhere in the country.

Info about the duty to keep NAV informed and professional artistic practice is found here. (Search the browser for work related to artistic employment)

Facts about working at your art studio and NAV’s reporting card

As an artist, one can be registered in the NAV system and continue to work at one’s art studio without recording hours worked on the unemployment reporting card. Most people (even employees of NAV) are not aware of this option, and one is usually asked to list hours worked on the card even if they are not reimbursed by NAV. This is only partly true, and it is wise to be aware of that fact (but the question is whether taking advantage of this option will only help undermine our profession?).

In accordance with NAV regulations for recording hours worked on the reporting card, as an artist you are not required to list hours worked for ordinary artistic practices that are not associated with paid assignments. That means you can do general investigation, experimentation etc. at your studio if this work not a direct part of a paid assignment. Please read the excerpts from in § 11-7 of the Circular regarding the duty to notify NAV and professional artistic work, below:

Professional artistic work

Artists should list the hours they use practicing their profession (including preparations, rehearsing and practicing for specific assignments, concerts, exhibitions etc.). Hours worked can be listed discretionally if no other manner exists to determine working hours, in consultation with your neighbourhood NAV office. Ordinary practice that is not associated with paid assignments does not need to be listed.

An artist who is granted or who will be granted an arts grant from the government arts council or a similar scholarship is considered 50 % employed during the period he/she receives the grant/scholarship. The grant or scholarship must be reported as wages, and the artist should list 18.5 hours a week for Week 1, and 19.0 hours a week for Week 2, on the reporting card.

All paid work that forms part of one’s artistic production that exceeds 18.5 and 19 hours respectively should be listed as well. Furthermore, any other work not categorized as the type of work the scholarship is intended to cover should be listed on the reporting card.

Travel and accommodations related to concerts, exhibitions etc. will require recording 7.5 hours a day when one is away from home.

Read the entire circular here

Retirement pension

The Norwegian pension system has been adapted in recent years to correspond more closely to earnings, employers or private solutions. That means that if your earnings are generally low you will end up receiving the minimum state pension, unless you are willing to sign a supplemental insurance policy.

The sum of pension reimbursements will be the sum of the benefits you are entitled to in the national insurance scheme, your accumulated pension from occupational pension schemes from employers and your own savings.

A retirement pension from the National Insurance Scheme ensure that you have an income in your old age, starting at age 67. As a general rule, you must have lived in Norway at least three years after reaching the age of 16, and you must still be a member of the national insurance scheme. Retirement pension consists of your basic (state) retirement pension and any supplemental pensions.

A complete basic pension and any special supplements. You will receive a full basic pension if you have lived in Norway for 40 years. For a single person, full basic pension corresponds to the base amount (G=grunnbeløp).

Supplementary pensions are calculated according to working income and how many years you earned working income. To get a full national insurance pension in Norway, you must have lived in the country for 40 years after reaching the age of 17.

An occupational pension plan has been introduced by and for most occupation groups. You can begin to collect on an occupational pension after retirement and before you reach official age of retirement for a national insurance scheme pension. The most common occupational pension scheme in Norway is the Qualified Contractual Retirement Plan (Avtalefestet pensjon, AFP). Financing these schemes is done through deductions from wages/salary for employees by employers.

A personal pension is based on accumulated pension rights through contracted employment (collective pension insurance).

A pension savings agreement is what an individual chooses to pay into an insurance plan or through a savings plan that will be paid out in instalments after reaching retirement age.

Sickness benefits and insurance

The employee will receive sick pay from his or her employer as of the first day of illness when using the self-declaration of illness form or by submitting a medical certificate from a doctor. The national insurance scheme commences benefits as of the 17^th day of illness (since 2009) for employees and sole proprietors. The differences between what a regular employee receives during illness and what a sole proprietor receives is great. While an employee gets paid 100 % of his or her sick pay benefit as of the first day of illness using a self-declaration or a doctor’s certificate, the sole proprietor will only be paid 65 % starting on day 17.

Pensionable income (personal income)is the basis for calculating sick pay.

Info from NAV concerning sick leave is available here.

Freelancers or sole proprietors (self-employed persons) can sign a supplemental insurance plan with NAV if they want more rights if they become ill. This insurance policy provides you with increased financial security during illness, and is fully tax deductible. The insurance premium is revised annually. In 2013, the rules were as follows:

• If you want sick pay as of the first day of illness, you must contribute 3.1 % from monthly income as the basis for sick pay. The basic fee is the average of the last three years of pensionable income (personal income). For Example: An average income of 300 000 per year will require depositing 9300 a year.
• Full coverage from the first day of illness costs 10 % costs 30 000
• Full coverage as of day 17 of illness costs 2.7 % costs 7 700 a year.
• 65 % coverage from the first day of illness costs 5400 a year.

Freelancers: NAV bases premium payments for freelancers on documented income. You are required to provide NAV with documentation of anticipated income. Examples of this are tax returns, wage and tax withdrawal forms, pay slips or copies of assignment agreements. NAV will base its decision on an individual assessment.

Sole proprietors / Self-employed persons: NAV bases premium payments for self-employed persons (sole proprietors) on documented entrepreneurial/self-employed income. This can be comprised of income statements, documentation of advance taxes paid, accrued periodic accounts from an accountant etc. This shall apply until you have accumulated three years of verified taxed income from self-employment.

Supplemental insurance can be acquired by entering NAV’s website and submitted a completed insurance application using NAV Form 08-36.05.It is also possible to find such insurance at an ordinary insurance company, but other prices will apply.

Info from NAV concerning sickness insurance is available here.

Disability benefits

A disability pension, now known as a disability benefit, ensures income for persons with prolonged income-limiting impairments due to illness, injury or ailments. There are two types of benefits: Time-limited disability benefits and disability pensions.

The application for disability benefits from the national insurance scheme should be submitted in writing or orally at your neighbourhood NAV office. As a general rule, you are required to be a member of the Norwegian national insurance scheme for at least three years prior to becoming disabled. You must be between the ages of 18 and 67. Your ability to work at gainful employment must be reduced by a prolonged illness, injury or ailment. A requirement also exist that states the illness, injury or ailment is the main cause of your reduced ability to work.

You must also undergo suitable medical treatment and vocational rehabilitation to improve your ability to work.

• Your ability to work must be reduced by a verifiable 50 percent. Public benefits of this kind are managed by the Norwegian Labour and Welfare Organization (NAV).

Info from NAV is available here.

Collected from the web pages of the Norwegian Visual Artists Association (NBK)

What are you getting paid for?

Be aware of the fact that you are selling intellectual property.

Right of use

Even though the artist may never see the painting he sold again, that does not mean the customer paid for absolute rights to the object to do whatever he pleases. In legal terms he has only paid for the right to keep the artwork in his possession. That price does not reflect costs for materials like canvas, stretchers and paint or how much time you used to create the artwork.

Manner of use

The customer’s intended use of an object d’art that was purchased from an artist will also influence the price he or she should pay. Purchasing artwork for a public space means many people will be allowed to enjoy the intellectual property, which implies added value on the work or art. One piece of advice for becoming a convincing art dealer or price negotiator is to be able to perceive the needs and limitations of your counterparty.

Time and space

A distinction should be made between whether something is displayed privately or publically, nationally or internationally, and it is important to determine the length of time an artwork will be on display.

Added value

The customer is paying for certain added values; the things you invested in the work through expertise, experience and production cost. You used many years of your life to refine your artistic language, you attended schools and participated in courses, perfected techniques on your own, carried out research and experimentation, read literature on the subject and spent time marketing your work and your persona as an artist. You are also paying for studio space, workshops, insurance, membership in the artist organizations etc., and you contribute to the national insurance scheme by paying monthly contributions – and much more.

Hourly rate calculator

You might benefit from information obtained from an hourly pay calculator (many of these can be found on internet) as the basis for compiling background information on yourself as an artist and as a businessperson. Avoid billing customer by the hour as much as possible so you get paid what you deserve, and be prepared to address special demands from customers or special requests from certain clients. Your time, effort and income will vary depending on the assignment and the customer, and you can work at your own pace. Your daily life will be more predictable. Predictability is good for your economic situation.

An hourly pay calculator will help you understand what your income is composed of and provides a good basis for success when preparing proposals for future customers and clients. It also provides an opportunity to see how much work your production requires, and can show you at what an assignment begins to be “unprofitable”. If combining the expenses from your artistic practice with another vocation is difficult, or if you need to fins other sources of income that are not related to your artistic practice, you may need to calculate expenses that are directly associated with your artistic practice and work in the studio and try to estimate the amount of time you need for artistic production.

NBK has an hourly rate calculator on its website intended for use by visual artists (see NBK’s timepriskalkulator). Found here.

A normal calculator is available here; www.matte.no/kalkulator.htm

The chemical working environment for visual artists, PDF 32 MB.

http://www.billedkunst.no/lydfiler/Kjemisk_billedkunstnere.pdf

The Visual Arts Levy Act, 5%
The Act relating to Charges on the Sale of Visual Art of 1948 (currently 5%)

For the sale of art at any public venue, and upon the acquisition of any artworks pursuant to this Act, on works of art of Norwegian or foreign origin, the purchaser shall pay a charge of 5 per cent on the purchase price of the artwork. The Ministry shall determine the amount and/or percentage of this charge.
In the event payment is made wholly or partially in the form of another work of art, the charge must be paid on both works of art if the corresponding cash or cash equivalent sale would have been taxable. This charge however shall not apply to gifts. The Ministry can establish further rules about what type of art shall be subject to the charge and the extent to which this obligation shall apply to sales in foreign countries or to foreign individuals or entities, or on Svalbard.
The Relief Fund for Visual Artists is the body that manages this scheme.

www.kunstavgiften.no
www.bkhkunstavgift.com
www.lovdata.no

The Norwegian Culture Act (Kulturloven)
Act on the Responsibility of Public Authorities for Cultural Activities of 2007

The purpose of this Act is to establish the responsibilities of public authorities to promote and facilitate a wide range of cultural activities, so all citizens have the opportunity to participate in cultural activities and experience a diversity of cultural expressions.
Cultural activities are defined in the Act as:
a) creating, producing, performing, practicing, communicating and distributing art and other cultural expressions,
b) protecting and promoting insight about cultural heritage, and supporting such efforts,
c) participating in cultural activities,
d) developing knowledge and professional competence on culture and cultural activities.
www.lovdata.no

Agreement on exhibition compensations
Compensation is organized through negotiations and agreements between the State and The Norwegian Visual Artists Association, the Norwegian Association for Arts and Crafts, the Norwegian Association of Fine Art Photographers and the Sami Artists Union.
This agreement is usually applicable for a period of 4 years at a time and includes calculations for grants, funding and compensation and manner in which such grants are distributed. A private agreement was reached through arbitration between the artist organizations regarding the manner in which the schemes are governed. These funds form a part of the annual Norwegian state budget.