Auction of contents of bike shop, near Dundee, next week.

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bruce1530

Guru
Location
Ayrshire
It’s always sad seeing a liquidation auction, but someone might pick up a few bargains.

https://www.sweeney-kincaid.com/Sales/SaleDescription.aspx?SaleId=3245

ONLINE AUCTION (Dundee) Closing 11am Tuesday 16th January 2018

On Behalf of The Liquidator of World of Cycles Limited

CONTENTS OF BICYCLE SHOP & VEHICLE:
(06 Plate) Ford Transit Connect Panel Van, Stock of Merida Bicycles, Orbea Bicycles, Range of Cycling Clothing, Kids Bikes, Bicycle Tooling, Rapid Bicycles, Freesprint Bicycles, Range of Adult & Kids Helmets, Cycling Shoes, 2 x Bush Flat Panel TVs & Various Bike Accessories etc

A word of caution - if you are the highest bidder, you have to pay the “hammer price”, plus 15% commission, plus VAT - so about a third extra. Goods need to be collected on a specific day.

Unlike an eBay auction, the closing time is extended by ten minutes if a last minute bid is submitted.
 
Lot #61 - content of drawers
:whistle:

xx(
 

Poacher

Gravitationally challenged member
Location
Nottingham
A word of caution - if you are the highest bidder, you have to pay the “hammer price”, plus 15% commission, plus VAT - so about a third extra. Goods need to be collected on a specific day.

Point of order, m'lud; the VAT only applies to the auctioneer's 15% commission, so the amount you pay will be the hammer price plus 18%
 
OP
OP
bruce1530

bruce1530

Guru
Location
Ayrshire
That’s not the case here, I’m afraid....

In general, auctioned goods are liable to VAT.
However, there is a VAT condition, usually referred to as “the auctioneer’s scheme”, where the VAT is only paid on the auctioneer’s fee. That’ll be the situation you’re referring to, but it only applies to second hand goods, collectibles and works of art etc. So for “domestic” auctions - second hand goods and collectibles/antiques - what you say is true. The VAT is only paid on the service that the auctioneer delivers, as VAT will presumably have been paid on the original purchase.

But for most commercial auctions, VAT is paid on the entire transaction. A VAT-registered bidder can of course reclaim this.
 

Poacher

Gravitationally challenged member
Location
Nottingham
That’s not the case here, I’m afraid....

In general, auctioned goods are liable to VAT.
However, there is a VAT condition, usually referred to as “the auctioneer’s scheme”, where the VAT is only paid on the auctioneer’s fee. That’ll be the situation you’re referring to, but it only applies to second hand goods, collectibles and works of art etc. So for “domestic” auctions - second hand goods and collectibles/antiques - what you say is true. The VAT is only paid on the service that the auctioneer delivers, as VAT will presumably have been paid on the original purchase.

But for most commercial auctions, VAT is paid on the entire transaction. A VAT-registered bidder can of course reclaim this.
Whoops! Sorry if I've misled anyone. You can tell I've only ever bought second hand goods at auction.
 
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