Commission at auction houses

[Ihavenojob]

I buy quite a lot at auction houses, mainly online, sometimes in the building. One kicker is commission, it varies considerably from auction to auction, plus there is an added percentage for using online platforms, which can take the total fees up to 39% in some cases, something I have to factor in. Today I almost came a cropper, an auction was adding VAT to the hammer price, I only realised as I was about to place a commission bid. worked out I would have had to pay 56% on the hammer price.

 

[transam]

I dunno

But imho any commission / fees should be in the hammer price

Not added on top ????

Thought it was illegal not to make people aware of vat ????!

 

[Ihavenojob]

Thought it was illegal not to make people aware of vat ????!

They do point it out that vat is applied to the hammer price, but someone could mistake it for the vat on the commission of the hammer price, which is why I asked them.

 

[noseall]

Surely all the legal stuff and the financial stuff is in the info' pack?

 

[nickjb]

It is, but it's not always clear. It's obviously done deliberately and is pretty disingenuous

 

[noseall]

It is, but it's not always clear. It's obviously done deliberately and is pretty disingenuous

You have to hunt out (large) hidden costs? Sounds like a con.

 

[motorbiking]

I buy quite a lot at auction houses, mainly online, sometimes in the building. One kicker is commission, it varies considerably from auction to auction, plus there is an added percentage for using online platforms, which can take the total fees up to 39% in some cases, something I have to factor in. Today I almost came a cropper, an auction was adding VAT to the hammer price, I only realised as I was about to place a commission bid. worked out I would have had to pay 56% on the hammer price.

VAT on the final price? Not just their fees? On a property action?

Can you share the wording, this looks like a mistake.

 

[Ihavenojob]

Can you share the wording, this looks like a mistake.

WITH VAT ON THE HAMMER BIDDING QN EASYLIVE

20% VAT ON THE HAMMER = 20%

28% + VAT BUYERS PREMIUM = 33.6% - (includes online bidding fee)

TOTAL 53.6%



NO VAT ON THE HAMMER BIDDING ON EASYLIVE

25% + VAT BUYERS PREMIUM = 33.6% (includes online bidding fee)

TOTAL 33.6%



WITH VAT ON THE HAMMER ON THE SALEROOM.COM

20% VAT ON THE HAMMER = 20%

25% + VAT BUYERS PREMIUM = 30%

4.95% +VAT SALEROOM.COM = 5.94%

TOTAL 55.94%



NO VAT ON THE HAMMER ON THE SALEROOM .COM

25% + VAT BUYERS PREMIUM = 30%

4.95% +VAT SALEROOM.COM = 5.94%

TOTAL 35.94%

I have left a bid, but adjusted it accordingly.

 

[fillyboy]

WITH VAT ON THE HAMMER BIDDING QN EASYLIVE

20% VAT ON THE HAMMER = 20%

28% + VAT BUYERS PREMIUM = 33.6% - (includes online bidding fee)

TOTAL 53.6%



NO VAT ON THE HAMMER BIDDING ON EASYLIVE

25% + VAT BUYERS PREMIUM = 33.6% (includes online bidding fee)

TOTAL 33.6%



WITH VAT ON THE HAMMER ON THE SALEROOM.COM

20% VAT ON THE HAMMER = 20%

25% + VAT BUYERS PREMIUM = 30%

4.95% +VAT SALEROOM.COM = 5.94%

TOTAL 55.94%



NO VAT ON THE HAMMER ON THE SALEROOM .COM

25% + VAT BUYERS PREMIUM = 30%

4.95% +VAT SALEROOM.COM = 5.94%

TOTAL 35.94%

I have left a bid, but adjusted it accordingly.

Certainly not straight forward is it.

 

[Ihavenojob]

Certainly not straight forward is it.

If anyone is unsure, ask, or don't bid. The bid I put in was (with the commission) around about the price of silver, possibly just over. That bid has now been surpassed, so I wonder if that bidder knows the score ? The vat is not hidden, it says on the description "this lot is liable for vat". I was fairly sure what they meant, but queried it just to be sure

 

[motorbiking]

Does it not say elsewhere that VAT on the hammer price is only applicable to new goods or special goods requiring it?

https://support.easyliveauction.com/hc/en-gb/articles/360014894958-What-are-the-additional-costs-of-bidding-at-auction-that-I-should-know-about

"this lot is liable for vat"
suggest that no VAT was paid on the original item or their is substantial VAT margin, in the resale. There is a no double tax.

VAT margin schemes

How to use VAT margin schemes - records you need to keep, invoicing and VAT return reporting

www.gov.uk

 

[Ihavenojob]

Does it not say elsewhere that VAT on the hammer price is only applicable to new goods or special goods requiring it?

https://support.easyliveauction.com/hc/en-gb/articles/360014894958-What-are-the-additional-costs-of-bidding-at-auction-that-I-should-know-about

"this lot is liable for vat"
suggest that no VAT was paid on the original item or their is substantial VAT margin, in the resale. There is a no double tax.

VAT margin schemes

How to use VAT margin schemes - records you need to keep, invoicing and VAT return reporting

www.gov.uk

I think vat is liable as the lot is some silver bullion coins and the vendor is vat registered.

 

[gas112]

Years ago buying a car at the auctions it used to be about 30 quid after the sale price for an indemnity last time i looked it was several hundred quid

 

[Ihavenojob]

It is, but it's not always clear. It's obviously done deliberately and is pretty disingenuous

Caveat emptor