VATMARG04100 - 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.