SolvedVATMARG04100 | The auctioneers’ scheme: Terms used in Section 7 to 12 of Notice 718
From HM Revenue & Customs · VAT Margin Schemes
For the purposes of the auctioneers’ scheme, definitions of some of the terms used in this section and in Notice 718/2 The VAT Auctioneers’ Scheme are as follows.
| ### Term used | ### Definition |
|---|---|
| Vendor | Sells eligible goods directly to the auctioneer. |
| Buyer | Purchases eligible goods directly from the auctioneer. |
| Hammer price | The amount of the last bid accepted by the auctioneer on the fall of the hammer - signifying the end of the sale for each lot. |
| Vendor’s commission | The amount charged to the vendor of the goods, based on an agreed percentage of the hammer price. |
| Buyer’s premium | The amount charged to the buyer of the goods, based on an agreed percentage of the hammer price. |