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CailinDeas | 10:42 Thu 23rd Oct 2014 | How it Works
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If I sell an item at auction for say £100. I pay commission of £15 + VAT
You buy the item for £100. and pay £15 commission + VAT
So I get £85 - Vat and you pay £115 + VAT.
Is this so?
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Yes.
Question Author
Think I fancy being an auctioneer!!!
Assuming that both Seller's Commission and Buyer's Commission are 15%, then you are correct.

However, some Auction Houses charge more, some charge less, and many charge different rates for Sellers and Buyers.
yes but the vat is on the commision not the item so the buyer would pay £100 + £15 + £3. So the buyer pays £118, the seller gets £82, the auction house gets £30 and HMRC get £6.
Some auction houses charge the seller another 1.5% of the hammer price for "insurance", and a small "lotting fee" for putting the item into the sale catalogue - especially if it's on the web.
Very risky business if you don't know what you're doing. Even Sotheby's has been sued for mis-describing an item.

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