9) Purchase Price
9.1 The purchase price at auction to the Buyer for an Item shall be (i) the Hammer Price, plus (ii) a Buyer’s Premium equal to an amount calculated as 20% of the Hammer Price of each Item, plus (iii) any shipping or handling charge as specified in the invoice sent by email to the Buyer.
9.2 In addition to the Hammer Price and the Buyer’s Premium, the Buyer shall pay (i) the Resale Royalty where applicable and (ii) VAT at the prevailing rate on the Buyer’s Premium (currently 20%).
9.3 The purchase price for a Buy It Now Item shall be (i) the Offer Price accepted by the Seller whether at or below the initial asking price (ii) any shipping or handling charge as specified in the invoice sent by email to the Buyer.
9.4 In addition to the Offer Price for a Buy It Now Item the Buyer shall pay the Resale Royalty where applicable.
10) Resale Royalty
10.1 Implementation of Artist's Resale Right
i. Artist's resale right came into force in the United Kingdom (UK) on 14 February 2006. This right entitles authors of original works of art (including for example paintings, engravings, sculpture, ceramics) to a royalty each time one of their works is resold in a sale involving an art market professional.
ii. The right only applies to sales for €1,000 or more and is calculated on a sliding scale (see below table). The maximum royalty payable on any single sale is €12,500.
iii. The royalty is subject to compulsory collective management so artists cannot claim their royalty independently but must receive it through a collecting society.
iv. In the UK the right only applies to sales of works by living authors. However, after 2010 the right will be extended to cover sales of works which are still in copyright; that is the author has been dead for less than 70 years.
10.2 Exempted Resale
Three types of resale are outside the regulations, and therefore of the new scheme. First, where the sale price is less than €1,000. Second, where the buyer or seller (or agent of the buyer or seller) is not 'acting in the course of business of dealing in works of art'; in other words, the regulations apply only to sales or purchases by art market professionals. Third, where the seller previously acquired the work directly from the artist less than three years before the sale, and the sale price does not exceed €10,000; in other words, the regulations apply only to sales made three or more years after the artist's first studio sale or transfer of ownership, and to all sales exceeding €10,000 even if they are made within the first three years after the artist's first studio sale or transfer of ownership.
10.3 Exempted Artworks
Not all artworks are included in the new scheme - only works of 'graphic or plastic art such as a picture, a collage, a painting, a drawing, an engraving, a print, a lithograph, a sculpture, a tapestry, a ceramic, an item of glassware or a photograph'; also included are copies of works if they are 'one of a limited number which have been made by the author or under his authority'.
10.4 Table of applicable charges
Royalty For the portion of the resale Price (in EUR €)
4.00% Up to 50,000
3.00% Between 50,000.01 and 200,000
1.00% between 200,000.01 and 350,000
0.50% between 350,000.01 and 500,000
0.25% in excess of 500,000
11) VAT and VAT Guide for Buyers
11.1 Generalities:
i. VAT is payable in accordance with applicable law. All prices, fees, charges and expenses set out in these Terms and Conditions of Sale are quoted ex VAT.
ii. The following guide provides general information to buyers on the VAT implications of purchasing property at Intercollector . This information is not intended to be complete. In all cases, the relevant tax legislation takes precedence, and the VAT rates in effect on the day of the auction will be the rates charged.
iii. In the following paragraphs, reference to VAT symbols shall mean those symbols located beside the Item number or the pre-sale estimates in the catalogue (or amending notices).
11.2 Property with no VAT symbol
Where there is no VAT symbol, Intercollector is able to use the Auctioneer’s Margin Scheme, and VAT will not normally be charged on the hammer price.
VAT will be charged on both the Buyer’s Premium and the Sellers Commission, as well as on any other services provided by Intercollector .
11.3 Property with a VAT * symbol
These items will be sold under the normal UK VAT rules, and VAT will be charged at 15% on both the hammer price and buyer’s premium.
11.4 Property with a VAT ** symbol
Items sold to buyers whose registered address is in the European Union (EU) will be assumed to be remaining in the EU. The property will be invoiced as if it had no VAT symbol. However, if the property is to be exported from the EU, Intercollector will re-invoice the property under the normal VAT rules, as requested by the seller.
Items sold to buyers whose address is outside the EU will be assumed to be exported from the EU. The property will be invoiced under the normal VAT rules. Although the hammer price will be subject to VAT, this will be cancelled or refunded upon export. The buyer’s premium will always attract VAT. However, buyers who are not intending to export their property from the EU should notify Intercollector Client Accounts Department (customer.service@intercollector.com) before the time of the sale, and the property will be re-invoiced showing no VAT on the hammer price.
11.5 Property sold with a VAT *** or VAT **** symbol
These items have been imported from outside the EU to be sold at auction under temporary importation. Items subject to temporary importation will be offered under the auctioneer’s margin scheme and will be subject to import VAT of either 5% (VAT ***) or 15% (VAT ****) on the hammer price and an amount in lieu of VAT at 15% on the buyer’s premium.
11.6 VAT Refunds from HM Revenue and Customs
Under certain circumstances, it may be possible to seek repayment from HM Revenue and Customs. Repayments in this manner are limited to businesses located outside the UK and may be considered for:
>VAT charged on buyer’s premium on property sold under the normal VAT rules, i.e. with a VAT * or VAT ** symbol.
>Import VAT charged on the hammer price and buyer’s premium for lots sold under temporary importation, i.e. with a VAT *** or VAT **** symbols.
Claim forms are available from:
HM Revenue and Customs - Compliance Centres
VAT Overseas Repayment Unit S1250
Benton Park View
Newcastle upon Tyne
NE98 1YX
United Kingdom Telephone:
03000 545 316
Outside UK:
+44 (0) 3000 545 316
Fax:
03000 556 302
11.7 Sales Taxes
Buyers from outside the UK should note that local sales taxes may become payable upon import of items following purchase at Intercollector . Buyers should obtain their own advice in this regard.
12) Ownership and Risk
12.1 Ownership of an Item shall pass to the Buyer when Intercollector has received from the Buyer in cleared funds the precise amount in Pound Sterling requested by Intercollector in the Sale Invoice. This will typically include the full purchase price for the Item and all other sums due to Intercollector for services such as shipping and packing.
12.2 Risk in an Item shall pass to the Buyer on Delivery to the Buyer’s Address by the Seller.
13) Delivery of Property
I. Intercollector will not instruct the Seller to ship a Lot or Item to the Buyer until payment of the Purchase Price of the Lot or Item has been received in full in cleared funds, and no other sums which have become due by the Buyer to Intercollector are outstanding.
II. All costs and risks in relation to packing, handling, shipping, customs and insurance shall be fully assumed by the Seller as specified in the Consignment Agreement.
III. If Intercollector are on notice of an actual or potential claim in respect of Property still in possession of the Seller, Intercollector shall not instruct the Seller to release the Property to the Buyer until it is jointly instructed by the Buyer and the claimant(s) or served with a binding Court order.
14) Remedies for Non-Payment
Without prejudice to any rights the Seller may have, if the Buyer without prior agreement fails to make payment in cleared funds for a Lot or Item within five Business Days of the auction or the conclusion of a Buy It Now sale, Intercollector may in their sole discretion exercise one or more of the following remedies:
(a) cancel the sale of the Lot or Item;
(b) reject future bids or offers from the Buyer or render such bids subject to payment of a deposit;
(c) charge interest at 6% per annum above the base rate of the principal bank of Intercollector in London, from the date payment became due to the date the purchase price is received in cleared funds;
(d) (i) In the case of Auction items, resell the Lot by auction, with estimates and reserves at Intercollector’s reasonable discretion fixed in agreement with the Seller. In the event such resale is for less than the original Hammer Price and Buyer’s Premium for that Lot, the Buyer will remain liable for the shortfall together with all costs incurred in such resale. (ii) In the case of By It Now items, reoffer the item at a future date at or below the original asking price. In the event such resale is for less than the original offer Price for that Item, the Buyer will remain liable for the shortfall together with all costs incurred in such resale;
(e) suspend payments of amounts due to the buyer, if any, from the sale of property through the website and to use these to offset the Hammer Price and Buyer’s Premium due;
(e) commence legal proceedings to recover (i) the Hammer Price and Buyer’s Premium for a Lot at auction, together with interest and the costs of such proceedings (ii) the Offer price for a Buy It Now Item, together with interest and the costs of such proceedings;
or
(f) release the name and address of the Buyer to the Seller to enable the Seller to commence legal proceedings to recover the amounts due and legal costs.
15) Rescission by Intercollector
Intercollector shall have the right, but not the obligation, to rescind a sale without notice to the Buyer, where they reasonably believe that there is a material breach of the Seller’s representations and warranties, or an adverse claim is made by a third party including but not limited to, someone claiming ownership of the Property or a foreign government or governmental agency. Upon notice of Intercollector’s election to rescind the sale, the Buyer will promptly return the Property to Intercollector . Intercollector will then refund the Hammer Price, Buyer’s Premium and VAT on the Lot paid to Intercollector or in the case of a Buy It Now Item, the Offer Price paid to Intercollector . The refund shall constitute the sole remedy and recourse of Buyer against Intercollector and the Seller with respect to such claim.
16) Export And Import
Before bidding or making an offer for any Property, bidders are advised to make their own enquiries as to whether a licence is required to export the Property from the United Kingdom. Bidders and Users are advised that some countries prohibit the import of Property made of or incorporating (irrespective of percentage or age) animal material, such as but not limited to ivory, whalebone, rhinoceros horn or tortoiseshell. Accordingly, prior to bidding or making an offer, Bidders and Users considering export of the Property should familiarise themselves with relevant export and import regulations of the countries concerned. It is solely the Buyer’s responsibility to comply with these laws and to obtain any necessary export, import and endangered species licences and/or permits. Failure to obtain a licence or delay in so doing shall not constitute a basis to cancel a purchase or delay in making payment for a purchase.