Why is my auction invoice higher than my winning bid?
The invoice is almost always higher than the winning bid, because the hammer price is only the starting point. Here's how to go through it line by line and find out whether it's right.
The lines you'll usually see
- Hammer price: the winning bid.
- Buyer's premium: the auction house's percentage on top.
- Online bidding or platform fee: only if you bid through an online platform.
- VAT: usually on the premium and other fees, and on the hammer price for some lots. Some catalogues also mark lots on which import VAT is payable on the hammer price.
- Artist's Resale Right: a separate charge on some artworks (see our guide).
- Delivery, packing or handling, if the auction house arranged it.
An example invoice
A lot hammers at £600. The auction house charges a 25% premium plus VAT, and a 5% online fee because you bid through a platform.
| Hammer price | £600.00 |
| Buyer's premium (25%) | £150.00 |
| Online bidding fee (5%) | £30.00 |
| VAT at 20% on the fees (£180.00) | £36.00 |
| Total to pay | £816.00 |
That's £216, or 36%, more than the hammer price. It looks like a big jump, but every line is explainable.
Check your invoice in four steps
- Find the premium and any online fee in the auction's conditions of sale.
- Enter them in BidCalc with your hammer price.
- Compare each line with your invoice.
- If a line is different, look at the reasons below, then ask the auction house to explain it.
Why the numbers might not match
- VAT wording. A premium quoted "inclusive of VAT" already contains the VAT. See the VAT guide.
- VAT on the hammer price. Some lots carry it. Look for a symbol on the lot.
- A banded premium. Some houses charge a higher rate on the first part of the price and a lower rate on the rest. BidCalc applies one percentage to the whole hammer price, so work out the blended rate first. For example, 25% on the first £800 and 20% on the rest of a £1,000 hammer price is £200 + £40 = £240, which is 24% of £1,000. Enter 24%.
- A fee you missed, such as the online fee, import VAT or Artist's Resale Right.
- Rounding, which can move a total by a penny.
How BidCalc helps
It builds the invoice from the rules, so you can see which line is off. Each charge is shown separately, and VAT appears on its own line, so a mismatch points straight at the cause.
See this invoice in the calculatorGeneral information only, not tax or financial advice. Auction houses set their own fees and terms, so always check the conditions of sale and confirm the details with the auction house before you bid.