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VAT at auction question, by Horatio Nelson on Jun 2, 2020 19:10:53 GMT 1, I’m thinking about buying from auction tomorrow for the first time... (excluding eBay, of course).
I can calculate the buyers premium and get that there will be an element of VAT (it’s a UK auction house and I’m a UK resident), but it’s not clear to me what the VAT is payable on. Is it on the hammer price, or only the buyer’s premium (or both)?
The auction house says the following:
“For each Sale category VAT at the current rate of 20% will be added to the Buyer's Premium and charges excluding Artists Resale Right.”
The item is estimated at a few £k, so this makes quite a difference.
I’m thinking about buying from auction tomorrow for the first time... (excluding eBay, of course).
I can calculate the buyers premium and get that there will be an element of VAT (it’s a UK auction house and I’m a UK resident), but it’s not clear to me what the VAT is payable on. Is it on the hammer price, or only the buyer’s premium (or both)?
The auction house says the following:
“For each Sale category VAT at the current rate of 20% will be added to the Buyer's Premium and charges excluding Artists Resale Right.”
The item is estimated at a few £k, so this makes quite a difference.
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LJCal
Junior Member
Posts • 2,730
Likes • 4,113
December 2019
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VAT at auction question, by LJCal on Jun 2, 2020 19:22:49 GMT 1, VAT is payable on buyers premium only (with some rare exceptions). Typically you pay: Hammer price + 25% buyer premium + VAT at 20% of BP (this equates to 5% of hammer price) 4% ARR for qualifying lots and artists (over €1000 and a registered EU artist) So usually for UK buyers fees are between 30-34% of hammer price depending if ARR is payable. These are average buyers fees and they do vary.
VAT is payable on buyers premium only (with some rare exceptions). Typically you pay: Hammer price + 25% buyer premium + VAT at 20% of BP (this equates to 5% of hammer price) 4% ARR for qualifying lots and artists (over €1000 and a registered EU artist) So usually for UK buyers fees are between 30-34% of hammer price depending if ARR is payable. These are average buyers fees and they do vary.
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VAT at auction question, by Horatio Nelson on Jun 2, 2020 19:31:41 GMT 1, That makes sense and accords with what I’ve read.
It’s just that VAT “will be added to the buyer’s premium” makes it sound like it is in addition to, rather than on, the premium, but I think this is just loose drafting.
Thanks!
That makes sense and accords with what I’ve read.
It’s just that VAT “will be added to the buyer’s premium” makes it sound like it is in addition to, rather than on, the premium, but I think this is just loose drafting.
Thanks!
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cest
Junior Member
Posts • 1,725
Likes • 1,160
September 2018
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VAT at auction question, by cest on Jun 2, 2020 21:13:25 GMT 1, Ask the auction house to calculate the "estimate" and show formula
Ask the auction house to calculate the "estimate" and show formula
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