Auction fees explained: buyer’s premium, seller’s commission and VAT

At a UK auction the buyer pays the hammer price plus a buyer’s premium, a percentage set by each auction house that usually has VAT added, and sometimes an online bidding surcharge. The seller pays a commission on the hammer price. In published terms we checked on 17 October 2026, buyer’s premiums ran from 5% plus VAT to 30%.

What is a buyer’s premium?

The hammer price is the winning bid when the auctioneer closes the lot. The buyer’s premium is the auction house’s charge to the buyer on top of it. Bonhams’ buyer’s premium page puts it simply: “The buyer’s premium is the charge added to the hammer price of a lot you have won. Together, the hammer price and the buyer’s premium make up the purchase price, to which any applicable taxes, artist’s resale right and other charges are then added.”

Every house sets its own rate, and many use bands, charging one rate on the first part of the hammer price and a lower rate above a threshold. Bonhams notes that its premium “is calculated in bands. Each portion of the hammer price is charged at the rate for that band and the amounts are added together.” Rates also differ by type of sale within the same house: cars, wine and coins often have their own scale.

How much do auction houses charge buyers?

These are rates published by named UK auction houses, either on their own websites or in the terms of current sale catalogues on Easylive Auction, checked on 17 October 2026. They are examples, not a survey, and a house can change its rates from one sale to the next.

The pattern is clear even from a small sample. Fine-art and general antiques salerooms in these examples charge between 20% and 30% before VAT on most lots. Specialist vehicle and agricultural sales charge much less as a percentage, because the hammer prices are higher. Low-value commercial sales may set a higher rate or a minimum per lot, as Wellers and Hansons do.

How is VAT charged at auction?

Most second-hand goods, antiques and collectors’ items are sold under HMRC’s Auctioneers’ Scheme, a version of the VAT margin scheme. HMRC’s VAT Notice 718/2 tells auctioneers: “Using a margin scheme means that you do not have to account for VAT on the hammer price of the goods.” Instead, VAT is worked out on the auctioneer’s charges to buyer and seller. In practice, that is why catalogues quote a premium “plus VAT”: on a 24% premium, VAT at 20% makes the all-in charge 28.8% of the hammer price.

Some lots carry VAT on the hammer price as well. Tennants says “VAT may be applied to the hammer price of certain lots. These will be clearly marked in the online and printed catalogue.” Easylive Auction’s FAQ says this “tends to be for brand new goods or special items that require it”. Woolley & Wallis marks such lots with a dagger (†), and lots “temporarily imported from outside the EU” with an omega (Ω), which carry import VAT at 5% on the hammer price and the premium. Books are a common exception: Tennants adds VAT to the premium on all lots except books and unframed maps.

If you are VAT-registered and buying for your business, Notice 718/2 allows the auctioneer to re-invoice a sale outside the scheme, showing VAT separately on the hammer price and charges, so that you can reclaim it under the normal rules. Ask the house before you pay. For more on the consumer side, our blog covers whether you pay VAT on auction purchases.

What are internet bidding surcharges?

Bidding online can cost more than bidding in the room, because the platform or the house adds a percentage of the hammer price on lots you win online. How this works depends on the platform:

• Easylive Auction. When you register for a sale you choose a method. Its FAQ says: “Free Registration – If you chose this option you will also pay 3% of the hammer price for bidding online. This charge will be included in the invoice you receive from the auction house and will also have VAT added to it if the auction house is VAT registered.” The alternative is a “Flat Fee… including VAT for the online bidding service”, which “is taken regardless of whether you bid”.
• the-saleroom. Its bidder terms say “Auction Technology Group does not charge Bidder Users for accessing the Website” and that “the Auctioneer may charge Bidder Users in respect of auction bids or otherwise through commission payments”. Its FAQ says “typically auctioneers add an additional 3% of the hammer price if lots are successfully purchased online”. Tennants’ published terms quote a different figure for its sales: “a surcharge of 4.95% plus VAT of the hammer price… will be payable to the-saleroom.com”. Check each sale’s terms.
• BidSpirit. Its FAQ says: “Bidspirit doesn’t take any fees for online bidding.” The house’s own commission, shipping and taxes still apply.
• A house’s own bidding website. Tennants charges no surcharge on absentee bids left online and “a surcharge of 1.5% plus VAT of the hammer price” for bidding live through Tennants Live Bidding. Mulberry Bank Auctions says online bidding or autobids through its own website carry “a further 3% (3.6% including VAT)”. Dore & Rees charges 13% + VAT online against 12% + VAT in the room. Bonhams says the same rates apply however you bid with it, but “third party bidding platforms may add their own charge”.

A simple way to avoid surprises: before registering, open the sale’s terms and search the page for “surcharge”, “internet” and “online”.

What will I actually pay? Two worked examples

Example 1: a £100 lot at 24% + VAT, bid through Easylive’s free registration (assuming the house is VAT-registered and no VAT on the hammer):

• Hammer price: £100.00
• Buyer’s premium at 24%: £24.00, plus VAT £4.80
• Easylive surcharge at 3%: £3.00, plus VAT £0.60
• Total: £132.40, before any delivery

Example 2: a £1,000 lot in a Tennants Fine sale, bid live through the-saleroom (24% + VAT premium, 4.95% + VAT surcharge as published by Tennants):

• Hammer price: £1,000.00
• Buyer’s premium at 24%: £240.00, plus VAT £48.00
• the-saleroom surcharge at 4.95%: £49.50, plus VAT £9.90
• Total: £1,347.40, before any delivery or Artist’s Resale Right

Work backwards when you set a maximum bid. If your total budget is £500 and the all-in add-ons come to 32.4% (24% + VAT plus 3% + VAT), your top hammer bid is about £500 ÷ 1.324, roughly £377.

What do sellers pay?

Sellers (vendors) pay a commission on the hammer price, plus VAT, and often other charges. Fewer houses publish seller rates than buyer rates, because many agree terms per consignment. Bonhams, for example, says vendor’s commission is “set out in your consignment agreement”. Two houses that do publish:

• Tennants (Selling with Tennants): vendor’s commission of 15% of the hammer price, “with a minimum charge of £15 per lot on each lot whether it is sold or not”; a loss and damage warranty fee of 1.5% of the hammer price (minimum £1) per sold lot and 1.5% of the reserve per unsold lot; VAT at 20% “added to all commissions, premiums and charges”. Printed-catalogue illustrations, if agreed, typically cost £30 to £200; there is no charge for online photographs. Withdrawing items costs 20% of the lower estimate or reserve.
• 1818 Auctioneers (March 2025 article): “our seller’s commission is 22.5% (including VAT). This fee covers insurance, professional photography, advertising, and promotion”.

When comparing houses as a seller, ask for the commission, the minimum lot charge, insurance or loss-and-damage fees, photography and catalogue charges, unsold-lot fees, and how quickly you will be paid.

What percentage do most auction houses take?

There is no official industry average, and we have not found an independent survey we can cite. From the published examples in this guide:

• Buyer’s premium on general and fine-art sales: 20% to 28% plus VAT on most lots (24% to 33.6% including VAT), with Bonhams at 30% on the first £25,000.
• Vehicle and agricultural sales: 5% to 13% plus VAT.
• Seller’s commission: 15% plus VAT at Tennants and 22.5% including VAT at 1818 Auctioneers.
• Online surcharge: nothing on BidSpirit, 3% plus VAT on Easylive’s free registration, and up to 4.95% plus VAT on the-saleroom in the Tennants example.

Because the house is paid by both sides, its total income on a lot is the buyer’s premium plus the seller’s commission. 1818 Auctioneers said in March 2025 that it had surveyed 100 auction houses accredited by industry bodies such as SOFAA and NAVA and found an average buyer’s premium of 31.65%. It did not publish its method, so treat that as one house’s figure rather than a market statistic.

What other costs should you budget for?

• Artist’s Resale Right. Under the UK rules, a royalty is due when a qualifying work by a living artist, or one who died within the last 70 years, resells for £1,000 or more. It is 4% up to £50,000, falling in bands above that, and capped at £12,500. Before 1 April 2024 the thresholds were in euros, which is why some older help pages still say €1,000.
• Storage. Tennants charges “a handling fee of £5 plus VAT per lot as well as a storage charge of £5 plus VAT per lot per day” for lots not collected within seven days.
• Delivery. Packing and courier costs are separate. See how to collect or ship items bought at auction.
• Import charges if goods are shipped abroad, which Tennants notes now apply to deliveries to the EU, including Ireland.

To compare platforms in more depth, read UK online auction sites compared; for the whole buying process, see how to buy at a UK auction. You can also browse upcoming auctions, auctions this week or the auction house directory, then open any sale’s catalogue to read its fees.

Sources

• Bonhams, What are Bonhams’ buyer’s premium and other charges? Checked 17 October 2026.
• Woolley & Wallis, Buying at Woolley & Wallis. Checked 17 October 2026.
• Tennants, Buying at Tennants and Selling with Tennants. Checked 17 October 2026.
• Sale terms published in Easylive Auction catalogues by Hansons, Wellers Auctions, Mulberry Bank Auctions, Martello Auctions, Dore & Rees Motoring and H J Pugh & Co (linked in the table). Checked 17 October 2026.
• 1818 Auctioneers, Understanding auction commission (March 2025). Checked 17 October 2026.
• Easylive Auction, FAQ (“What additional costs of bidding at auction?”). Checked 17 October 2026.
• the-saleroom, FAQs and Bidder Terms and Conditions, clause 6. Checked 17 October 2026.
• BidSpirit, FAQ (“Are there fees for bidding online”). Checked 17 October 2026.
• HMRC, Auctioneers’ Scheme (VAT Notice 718/2). Checked 17 October 2026.
• GOV.UK, Artist’s resale right. Checked 17 October 2026.

Frequently asked questions

How much do auction houses charge?

Buyers pay a buyer's premium on top of the hammer price, usually with VAT added. In published terms we checked on 17 October 2026, rates ran from 5% plus VAT on tractors at one rural saleroom to 30% at Bonhams, with most general and fine-art sales between 20% and 28% plus VAT. Online bidding can cost more.

What percentage do most auction houses take?

There is no single industry figure. In the examples we checked, buyer's premiums on general and fine-art sales were 20% to 28% plus VAT (24% to 33.6% including VAT). The seller's commission schedules we found were 15% plus VAT at Tennants and 22.5% including VAT at 1818 Auctioneers.

Is VAT charged on the hammer price at auction?

Usually not. Most lots are sold under HMRC's Auctioneers' Scheme, where VAT is worked out on the auctioneer's charges rather than the hammer price. Some lots, often new goods or goods sold for VAT-registered businesses, carry VAT on the hammer price as well, and catalogues mark them.

What is an internet surcharge at auction?

An extra percentage of the hammer price for lots won online. Easylive Auction charges 3% (plus VAT where the house is VAT-registered) on its free registration option, Tennants says bids through the-saleroom carry 4.95% plus VAT, and BidSpirit says it takes no fees for online bidding.

What is Artist's Resale Right?

A royalty for artists or their heirs when a qualifying work by a living artist, or one who died within the last 70 years, resells for £1,000 or more. It runs on a sliding scale from 4% and is capped at £12,500. Auction houses add it to the buyer's invoice and mark eligible lots.