# VAT on buyer's premium

> 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.

- URL: https://www.selloff.auction/glossary/vat-on-buyers-premium
- Language: English
- Also known as: VAT on buyer's commission
- Last updated: 2026-10-07
- Français: https://www.selloff.auction/fr/glossaire/tva-sur-les-frais-acheteur.md

## Definition

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.

In many systems the premium is taxed even when the hammer price itself is not, while under a margin scheme the VAT may be included in the premium without being shown. Exports can change the treatment. These rules vary by jurisdiction and should be confirmed with a tax adviser.

In Selloff, a default tax is assigned to each automatically generated invoice line type, per branch. An option limits VAT on the premium to the share attributable to lots subject to VAT.

## Related features

- [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.
- [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.

## Related terms

- [Buyer's premium](https://www.selloff.auction/glossary/buyers-premium.md): 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.
- [Margin scheme](https://www.selloff.auction/glossary/margin-scheme.md): A VAT arrangement available in some countries for second-hand goods, works of art, antiques and collectors' items, under which VAT is calculated on the dealer's or auctioneer's margin rather than on the full selling price.
- [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.