HOW MUCH VALUE ADDED TAX (VAT) IS CHARGED AT WHISKY.AUCTION?
The bottles you buy and sell at auction are second hand goods. This means that UK based customers don't pay VAT on the hammer price. There is a non-reclaimable 20% VAT on the commission only. However there are some exceptions. Here, we answer all your auction VAT questions.
HOW DO I KNOW I AM BEING CHARGED THE CORRECT VAT WHEN I BUY AND SELL AT AUCTION?
As soon as you open an account with Whisky.Auction we will automatically charge you the correct amount of VAT. Whether you're an international customer, a private individual based in the UK, or a UK VAT registered business.
In any case we recommend you track your estimated invoice during the live auction.
WHAT DO THE DIFFERENT SYMBOLS MEAN ON MY INVOICE?
MARGIN indicates an item that is eligible for the margin scheme and VAT will not be charged on the hammer price, VAT is applied to the commission only.
+%VAT indicates that an item will have VAT added to the hammer price as well as the commission.
I AM A PRIVATE CUSTOMER BUYING AND SELLING IN THE UK. HOW MUCH VAT DO I NEED TO PAY?
If a lot is being sold by another private UK seller you will pay VAT on the commission only.
When a lot is sold by a business or an international seller it is subject to standard VAT, which will be added to the full price (hammer price + commission) at checkout.
WHAT IF I AM BUYING OR SELLING FROM OUTSIDE OF THE UK?
Buyers and sellers shipping to and from outside of the UK do not pay UK VAT. However local taxes may apply.
If you choose to collect or deliver to a UK address then you will be charged VAT as if you were a private UK buyer.
I AM BUYING AND SELLING FOR A VAT REGISTERED UK BUSINESS. Can I request a VAT invoice?
All VAT registered businesses are subject to standard VAT on all lots. If you are a Whisky.Auction Trade customer we will automatically provide a VAT receipt for your accounts at checkout. Contact us to request a VAT receipt if you have not already registered for this service.
WHAT IF I AM BUYING AND SELLING FOR A BUSINESS BUT I AM NOT VAT REGISTERED?
UK based companies that are not VAT registered should normally request a standard margin invoice.