My First Auction... - Commision?

[CoraHarrison]

The auction houses website says this


Buyers Premium: Would clientele please note that a Buyers Premium of 10% plus VAT will be applicable at all auction sales.


Does that mean the commission is 30% on top of anything I bid?

Thanks

[keithlbw]

I think it means VAT will be charged on the 10% Buyers Premium.

[CoraHarrison]

found this too if it helps...

VAT: Sale on a VAT exclusive basis. VAT at the appropriate rate to be added to the amount of he final bid. Items subject to VAT are marked with an * in the catalogue, all lots marked M are subject to the VAT Margin Scheme and all lots marked Z are zero rated

[BenDToy]

I would see this as two separate charges.
First is the Buyers Premium which is 10% plus VAT. I think that would be 12% of the final price (ie 10% of the price, plus 20% of the premium)
Second is the VAT due on the price of the item. This is 20% of the selling price on VATable items. Not all items will have VAT due on them (only those marked with a *). Depends on the type of item, and the seller's status I guess. Check the catalogue before deciding whether to bid!!

[CoraHarrison]

So 12% unless they have a * at the side of them in the catalogue?

[heathfield]

As far as I'm aware the asterisk denotes items that are new rather than being second-hand, and are therefore subject to VAT. Scroll down to 'Buyer's Guide' here...

http://www.wellersauctioneers.com/Tuesday.html

[Buenchico]

As you suggest Cora, sale items attract a total of 12% of the hammer price (as the buyer's premium + the VAT on that premium) unless they're marked with an asterisk.

Auctioneers are obliged to charge VAT on items sold on behalf of a VAT-registered trader, such as shops or the Official Receiver. (Assuming, of course, that the items would have VAT on them if they were sold elsewhere. Things like books, children's clothes or most foods don't have VAT on them).
The aggregate effect of the VAT on the item and the VAT on the buyer's premium (plus that premium itself) is to increase the hammer price by 32%.

Chris

[DTCwordfan]

12 per cent ain't half bad....