VAT guide
UK Auctioneer’s Margin Scheme
20% in lieu of VAT is charged on the Buyer’s Premium. This will be shown on the invoice as included within the Buyer’s Premium.
Hammer Price: £1,000
Buyer’s premium at 26% (£260) plus 20% VAT: £312
Total price: £1,312
(VAT equivalent to £52)
Standard UK VAT rules
20% VAT charged on the Hammer Price and the Buyer’s Premium.
Hammer Price: £1,000
VAT on Hammer: £250
Buyer’s premium at 26% £260
20% VAT on Buyer’s Premium: £52
Total price: £1,562
VAT element is equivalent to £302
Lot has been imported from outside of the UK and is eligible for a reduced VAT rate (most artworks and antiques)
A reduced rate of Import VAT on the Hammer Price of 5% is payable. This indicates that a Lot has been imported from outside the UK.
20% in lieu of VAT is charged on the Buyer’s Premium. This will be shown on the invoice as included within the Buyer’s Premium.
Hammer Price: £1,000
Reduced VAT on Hammer: £50
Buyer’s premium at 26% plus 20% VAT: £312
Total price: £1,350
VAT element is equivalent to £102
Lot has been imported from outside of the UK and is not eligible for a reduced VAT rate
20% VAT charged on the Hammer Price.
20% in lieu of VAT is charged on the Buyer’s Premium. This will be shown on the invoice as included within the Buyer’s Premium.
Hammer Price: £1,000
Reduced VAT on Hammer: £250
Buyer’s premium at 26% plus 20% VAT: £312
Total price: £1,550
VAT element is equivalent to £302
REMOVING VAT FROM AN INVOICE (INTERNATIONAL BUYERS)
Provided a buyer instructs an authorised carrier to export the Lot and accepts the export quotation provided by that authorised carrier, Forum can issue a "Zero-rated" invoice (i.e. without the UK VAT).
If VAT has already been paid, a VAT refund can be provided if we receive a copy of original correct paperwork stamped by HMRC (UK tax authority) showing the Lot has been exported from the UK within 30 days of payment.
VAT to be removed/refunded must be £50 or more per shipment and a processing fee of £20 (plus VAT) will apply. It is no longer possible to obtain tax refunds at UK airports upon departure following the abolition of the Tax-free shopping scheme for visitors to the UK.
Buyers from outside the UK may be subject to local/domestic import VAT, import duties, or other taxes.
UK BUYERS
We cannot cancel or refund any UK VAT charged on sales made to UK buyers where the Lot is collected from any of our locations in the UK or delivered to a UK address.
For Lots sold under the UK Auctioneer's Margin Scheme (which do not bear any symbol), UK buyers who have a UK VAT registration may request us to re-invoice the purchase of these Lots under standard UK VAT rules set out above. In this instance the UK VAT registered buyer can then account for the invoiced VAT in their usual way.
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