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HMRC internal manual

VAT Margin Schemes

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HM Revenue & Customs
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The auctioneers’ scheme: Terms used in Section 7 to 12 of Notice 718

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.