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On an online auction I won a car in the UK. The buyer premium was supposed to be 10%, of the hammer. But when they sent me an invoice they are asking about 22% of the premium. The increase is about $40,000 over what it should be. They are charging me VAT “inclusive” but won’t tell me what exactly this means.
They are an old, but small auction house that has recently found of selling counterfeit art work and they had to pay substantial damages.
I need an intermediary who can help me with this situation. I know there are a lot of PAS people here and may have some connections with UK.
Please PM me for details.
Any luck with the suggestions in our conversation Saturday?
Just for the others, VAT is a value added tax, added on to the purchase price of something sold within the European Union. It’s 20% of the sales prices. VAT does not apply on sales outside of the EU. They are to be “zero rated,” and no VAT is applicable. The seller merely needs to maintain copies of the export documents.
Ken, thank you for your kind phone conversation. I am still in communication with the Auction house. Will respond to you by email.
Ken, thank you for your kind phone conversation. I am still in communication with the Auction house. Will respond to you by email.
This is some years back and perhaps laws have changed.I purchased my Volvo P1800 From a firm in Amsterdam,Holland who was a dealer in new cars on a tax free basis to tourists. paid no tax even though my car carried Dutch plates because I was taking the car out of the country but if say I were to decide to stay in Holland and finish college there thus becoming a resident,then I would have been liable for the Dutch purchase.I paid no tax on the purchase of my 1927 Rolls Royce in Great Britain.In this case,armed with export documents,I might suggest trying to contact a Chartered Public Accountant or other professional in Great Britain who could get this resolved.I hope you have not paid for the car yet.People do buy cars overseas on the European Delivery Plans provided by companies like Mercedes-Benz,Audi,BMW and Volvo.These purchasers pay duty at the US Port of Entry at the amount for a used car and they have may to pay a tax at their state level when they register their car in their home state.
A bit of a typo! I meant if residing in Holland as a college student then I would have been liable for the Dutch purchase tax on the Volvo which at that time could have been 30-40 percent of the purchase price of my car.When I dropped my car off at the Volvo dealer in Copenhagen,Denmark,the owner gave me a lift back to my hotel and he told me people there paid the price of two cars for one as there was a high purchase tax on new cars.As a tourist taking delivery of a new car there,I would not have been liable for the tax.
I don’t have experience with this company, but I just sold a car that’s going overseas, the buyer has a small museum and says these guys are excellent.
The Auction house is being vague. They are stating a very large fee “Buyer Premium, VAT Inclusive.” I am asking for a breakdown. Am a bit fuzzy about the VAT.
It seems that I may need to have to pay something VAT and get a refund later. NOt sure if the Auction house could be thinking about getting the refund themselves later since I am naive about the process.
It also seems that as an American citizen, I may not even be subject to the VAT??
The value added tax is like a purchase tax.There can be taxes on the sales at antique car auctions here in the US but these should be waived if one takes delivery of their vehicle at their home location.I hope you have not sent them any money as of yet.You could refuse to go through with this transaction until this issue is resolved and if not resolved refuse the deal all together.You will of course lose the opportunity to get the car.On the other hand,the auction company might back down to get the deal done.Sometimes you have to play hardball.There are other cars out there.
We are working this out. Seems mostly a communication problem. I have an attorney involved and they are responding nicely. They are helping me get the car shipped. Hope to show some pictures of me driving the car.
Bill: you must be a good poker player, you hold your cards close. 
Do we have to wait until we see a photo of you driving this car from the UK, before we learn what make/year/model it is ??
It IS your car, so if you don’t want to share that info yet, that’s your prerogative. But the suspense is ‘getting-to’ me.
Greg Long
Aw Shucks. All negotiations are done. It was just a communications problem. All is well. They added in the VAT and it came out to 22%. I still have to pay the VAT, but it will be refunded to me, later.
Have a guess at what this car is?
Here is its brother running from the Indians. It was quite a Great Race!
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1908 Thomas Flyer!
Also make in Buffalo!
Yep, 1908 Thomas Flyer 4/60 flyabout.
We name cars after the previous owner. Our 1916 Pierce Arrow is “Jeff.” The Thomas is “Wolfgang.” Yep, from Buffalo. Nine Liter four cylinder. Should be here in a few weeks.
Lotta brass in this car. Reading a great book about the Great Race, “The King of Men.” An incredible narrative about the Race. It is fascinating and spellbinding. Kindle from Amazon .99cents. About all the money I have left after getting the Flyer.
