How GST applies to an auction purchase depends on the nature of the sale, and whether the Buyer or Seller is GST-registered.
Charges that generally include GST
GST is generally included in:
- Buyer's Premium
- Vendor Commission
- freight and shipping
- Delivery Guarantee
- Storage fees
GST on the Hammer Price
GST does not always apply to the Hammer Price.
- Non GST-registered Seller to Buyer — GST generally does not apply to the Hammer Price.
- GST-registered Seller (for example, a winery, retailer or business) — GST generally does apply to the Hammer Price.
Where GST applies to the Hammer Price of a lot, this will be made clear in the catalogue or lot listing.
A worked example
Consider a lot won at a Hammer Price of $1,000, with a Buyer's Premium of 18% (inclusive of GST).
Scenario 1 — Non GST-registered Seller (no GST on hammer)
| Item | Amount |
|---|---|
| Hammer Price | $1,000.00 |
| Buyer's Premium (18% inc. GST) | $180.00 |
| Total purchase price | $1,180.00 |
| GST component (within Buyer's Premium only) | $16.36 |
Scenario 2 — GST-registered Seller (GST applies to hammer)
| Item | Amount |
|---|---|
| Hammer Price | $1,000.00 |
| GST on hammer (10%) | $100.00 |
| Buyer's Premium (18% inc. GST) | $180.00 |
| Total purchase price | $1,180.00 |
| GST component (hammer + Buyer's Premium) | $116.36 |
Freight, Delivery Guarantee and Storage fees, where applicable, will also include GST and will appear separately on your invoice.
How prices are shown
Prices are generally shown inclusive of GST where applicable. Your tax invoice sets out the GST component of each charge.
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