# Buyer's premium

> A charge, usually a percentage of the hammer price, that the buyer pays to the auction house on top of the hammer price. The rate is published in the conditions of sale and can differ from one sale to another.

- URL: https://www.selloff.auction/glossary/buyers-premium
- Language: English
- Also known as: Buyer's commission, Buyer's fee
- Last updated: 2026-10-07
- Français: https://www.selloff.auction/fr/glossaire/frais-acheteur.md

## Definition

A charge, usually a percentage of the hammer price, that the buyer pays to the auction house on top of the hammer price. The rate is published in the conditions of sale and can differ from one sale to another.

The buyer's premium is, with the seller's commission, one of an auction house's two main sources of revenue. Depending on the country and the tax regime, it may be quoted with or without VAT. Online platforms may charge bidders an additional fee of their own.

In Selloff, the buyer's premium is defined per sale and can be overridden on a client's record. It is added automatically to buyer invoices, with buyer's insurance on a separate line if the house charges it.

## Related features

- [Automatic invoicing](https://www.selloff.auction/features/automatic-invoicing.md): Create buyer invoices and consignor statements from recorded sales in a few clicks, with premium, insurance, fees, shipping and VAT calculated automatically.
- [VAT & international tax](https://www.selloff.auction/features/vat-international-tax.md): Apply the right VAT to every invoice line by branch and client country, with dated rates, foreign VAT and a VAT report for your return.
- [Sales & auction types](https://www.selloff.auction/features/auction-types.md): Run auctions, offer sales, eBay-style timed sales and fixed-price sales, each with its own sessions, catalogues, dates, fees and bid increments.

## Related terms

- [Hammer price](https://www.selloff.auction/glossary/hammer-price.md): The price at which the auctioneer knocks a lot down to the winning bidder, before the buyer's premium, taxes and other charges are added. It is the basis for both the buyer's invoice and the consignor's settlement.
- [VAT on buyer's premium](https://www.selloff.auction/glossary/vat-on-buyers-premium.md): The value added tax charged on the buyer's premium, which pays for a service provided by the auction house. Its rate and calculation depend on the country of sale, the tax status of the lot and sometimes the buyer's location.
- [Buyer's invoice](https://www.selloff.auction/glossary/buyers-invoice.md): The invoice issued to the successful bidder after the sale, listing the lots bought with their hammer prices, the buyer's premium, applicable taxes and any shipping or other charges.
- [Conditions of sale](https://www.selloff.auction/glossary/conditions-of-sale.md): The terms that govern an auction: buyer's premium, bid increments, payment deadlines, collection and shipping, liability for descriptions, and the rules for absentee, telephone and online bids. Bidders accept them when registering.