VAT Rules for Auctions
Items offered for auction in the United Kingdom (UK) or the European Union (EU)
can either be sold under the Auctioneers' Margin Scheme or under the normal
Value Added Tax (VAT) rules.
HM Revenue and Customs (HMRC)
set out the rules for these schemes under
VAT Notice 718
(Auctioneers' Margin Scheme) and
VAT Notice 600
(Normal VAT Rules) respectively.
Essentially, the lot's bid (hammer) price, the buyer's premium and any other charges
relating to the lot (such as collection or storage charges) may be liable for VAT
under these schemes.
Bearnes Hampton & Littlewood Limited offers the majority of lots under the Auctioneers'
Margin Scheme. We indicate how VAT will be charged using the following notices.
Auction Lot VAT Notices
VAT on Buyer's Premium
|
The lot is being sold under the Auctioneers' Margin Scheme. VAT at the prevailing
rate will be charged on the buyer's premium, but not on the bid (hammer) price.
|
No VAT Applicable
|
The lot is being sold under the Auctioneers' Margin Scheme. The transaction will
not attract VAT on either the bid (hammer) price or the buyer's premium.
|