Auction Charges

[woofas]

Just want to be clarify the situation.
If I sell an item at auction for say £100 where the charges are 15% plus VAT, how much will I actually receive? Will it be £100 less £15 (charges) less £3 (VAT on charges) hence £82?

[brainiac]

Yes, I think that's correct. I've always thought auction houses are on to a good thing, as not only are they getting the (say) 15% plus VAT from the seller, they're getting the same from the buyer. So for every £1,000 across their desk, they're making £300, with the VAT taken care of. Not bad going!

[ToraToraTora]

yes that's correct

[barry1010]

brainiac, their insurance premiums are huge and don't forget they make nowt on lots that don't sell.

[saintpeter48]

I always thought that auction houses were making a tidy packet, if you watch TV programmes like 'Flog It' or 'Dickensons Real Deal' they always warn you about the fees, some charge 20% plus VAT, that is saying that on an item that is sold for £1000, both the sellers and buyers pay £200 each in fees plus VAT, thats £400 to the auction house for a few minutes work.
I know they have to store the item, advertise the item and publish a printed programme, plus insurance, but it does seem a lot of money.
Good job if you can get it!

[brainiac]

...almost exactly what I said earlier ^^^^

[bajorjoevel]

Not really. This sequence will not calculate commissions and % for participation. See, if you write an ITT bid for an open auction via https://bidwritingservice.com/what-is-an-invitation-to-tender-itt/ and specify an amount, a minimum of £3 (VAT on charges) will be deducted from that amount. The tax on that money will be deducted. If the amount is higher, it is subject to a different tax. Only after the deduction you can pay 15% VAT and it will be a lesser amount. But the previous tax will be higher because of the percentages that go to the treasury.