Smallholders Insurance from Greenlands

Author Topic: An idiot's guide to buying at auction?  (Read 5986 times)

Marches Farmer

  • Joined Dec 2012
  • Herefordshire
Re: An idiot's guide to buying at auction?
« Reply #15 on: July 20, 2016, 02:38:37 pm »
When I've bought at poultry sales at market there has always been purchasers commission and VAT added on but may well be wrong in terms of livestock.  does VAT on meat animals just mean prime stock? I would read that as stock just going through a fat ring?
The animal itself, being considered food, doesn't attract VAT. 

landroverroy

  • Joined Oct 2010
Re: An idiot's guide to buying at auction?
« Reply #16 on: July 20, 2016, 03:20:42 pm »
When I've bought at poultry sales at market there has always been purchasers commission and VAT added on but may well be wrong in terms of livestock.  does VAT on meat animals just mean prime stock? I would read that as stock just going through a fat ring?
The animal itself, being considered food, doesn't attract VAT.

Exactly!
I have had the discussion with my accountant as to whether VAT should be charged on the sale of donkeys as they are not usually eaten in this country. I pointed out that they have passports with a section about whether they can go for meat or not, and so therefore are meat animals, and not Vatable.

So in fact the same applies to poultry - they are commonly eaten so should not have VAT charged.
Are you sure you are not being charged buyers premium? This is in addition to the commission charged to the vendor, and the premium is Vatable even if the purchase price isn't.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

Victorian Farmer

  • Guest
Re: An idiot's guide to buying at auction?
« Reply #17 on: July 21, 2016, 12:45:01 pm »
Get a list of the breeder I use tablet to see haw he has done etc at the sale

irenemcc

  • Joined Sep 2013
  • H
Re: An idiot's guide to buying at auction?
« Reply #18 on: July 29, 2016, 09:45:53 pm »
Don't forget there's normally commission and VAT added to the hammer price. I think if you're not known to the auctioneers you have to register in advance. Check feet, teeth etc and if not 100% happy don't bid.

At a livestock auction the commission is taken of the purchase price before the vendor gets it, and VAT is not charged on meat animals. So the price you bid is the price you pay. (Unless they do things differently in Scotland?) 

Would certainly agree with getting there early so you can have a good look around and possibly talk to the vendors who often hang about near their pens. You can also hear what other people say about the animals. I always believe that time spent in reconnaissance is never wasted. ;)

When I've bought at poultry sales at market there has always been purchasers commission and VAT added on but may well be wrong in terms of livestock.  does VAT on meat animals just mean prime stock? I would read that as stock just going through a fat ring?

As Landroverroy says, livestock is not usually VATted.  Poultry sakes are a different matter. Also occasionally some rare breed type sales often attached to poultry sakes but generally sheep and cattle, whether fatstock  (prime animals), stores for further fattening or breeding stock, it is only the seller who pays commission and VAT, not the buyer. So the price you bid is the price you pay. The one sort of exception that catches folk out sometimes is at pedigree sales where the animals are still sold in guineas so if you bid 100, that is 100gns so when the cheque book comes out the price is 105, 200gns is 210 etc.

mowhaugh

  • Joined Jul 2013
  • Scottish Borders
    • Facebook
Re: An idiot's guide to buying at auction?
« Reply #19 on: July 29, 2016, 09:50:55 pm »
The VAT is on the commission the vendor pays, as this is a service, rather than the livestock itself. Conditions of sale vary not only from mart to mart but sale to sale, so make sure you understand the conditions for the sale you are going to. It is quite possible that the vendor may be paying commission AND the buyer paying buyer's premium, which really annoys me. One or the other, fair enough.

 

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