If there are fees to be added to the hammer price that a horse is sold for during the auction then it is often useful to go to the auction with a list of bidding prices and how this equates to the final price to be paid for the horse with the fees added to act as a reference whilst bidding.
Details of any auction fees can usually be found in the auction catalogue or in the auction conditions available from the auctioneer's office when collecting a bidding number. It is important to read through the terms of each individual auction carefully as auction fees can vary from one horse auction to another.
At the market type horse auctions, often the hammer price is the final price paid, but at the higher level horse auctions the hammer price may have an auctioneer's fee added. Such auction fees may be also be subject to VAT so an extra 20% is added to the auction fee listed.
Most horses offered for sale at auction are not subject to VAT and so the hammer price is the price to be paid for the horse. However, if a horse offered for sale in an auction is being sold on behalf of a VAT registered business then the auction bid will be subject to VAT which will add an additional 20% to the hammer price. Where there is a catalogue detailing the horses entered in the auction this will usually indicate when a particular horse is subject to VAT, and the auctioneer will also state this is the case when the horse enters the ring and before bidding starts.
Where horses are vetted prior to being entered into the auction, or successful bidders are given the option to have the horse vetted on-site after the sale in the ring the cost of the vetting is usually added to the hammer price and may be subject to VAT. Details of any vetting fees will be detailed in the catalogue.
All horse auctions require that payment is made on the day shortly after the hammer has fallen. It is important to check prior to bidding whether the auction accepts payment by cash, cheque or credit/debit card as not all horse auctions accept payment by all methods. Accepted payment methods are usually listed in the catalogue or can be checked with the organiser when obtaining a bidding number. Payments made by credit card may also be subject to an additional surcharge.