Taxes, Fees and Premiums

This article describes the processes for applying fees, Sales Tax, and Internet Buyer's Premium to auctions not using atgPay. For information related to taxes when using atgPay, see atgPay: Internet Sales Tax - Calculation, Collection, and Remittance.

This article contains the following sections: 

• About Fees
• Sales Tax
• Internet Buyer's Premium

About Fees

AuctionBuilder offers the flexibility to assign various fees at the auction and lot level. For example, shipping and title fees can be added to specific lots rather than to the entire auction. 

• Default fees are based on established account settings. To alter default fees, contact a Proxibid Account Manager.
• Fees applied at the auction level will filter down to the lot level, but can then be edited or removed from the lot by entering a zero into the Amount field.
• Lot fees can be uploaded during catalog upload using the AuctionBuilder Bulk Loader tool.
• Lot fees can be updated during invoicing, allowing for adjustments to a winning buyer's invoice.
• Lot fees, such as the amount of the Sales Tax, can be exported on the Winning Bidders Report. 

When creating a new event, an auction company's default fees will display. Once the event has been saved, those fees can be edited as needed.

For existing events, fees can be viewed/edited by clicking on the Listing link at the bottom of the auction event on the Dashboard.

To remove a fee, change the amount to zero or uncheck the Active box to the right of the fee.

Each Fee Type is assigned a code that will display in AuctionBuilder Only.

Fee amounts will display under the terms of the event at the auction and lot level. If the Internet Buyer’s Premium or Sales Tax have varying amounts, a range will display. Additional fees, such as Shipping, will only display at the lot level.

Sales Tax

Proxibid cannot make recommendations relating to specific tax rates. Consult a local tax agency or tax professional to determine how/what tax rates should be applied.

The sales tax rate entered into the Amount field is a percentage.

Use the Applies To drop-down to determine whether the percentage is applied to the Hammer Price, the Buyer's Premium Amount (Internet Premium), or the Running Total (the invoice total).

To put a limit on the dollar amount charged as sales tax, enter a dollar amount into the Cap field.

Internet Buyer's Premium

The Internet Buyer's Premium (IBP) is the buyer's premium that is charged to online bidders. 

For auction companies that choose to have a 0% buyer's premium, a prominent ZERO! graphic will display to distinguish the auction from other events.

The IBP entered into the Amount field is a percentage, generally based on the Hammer Price.

To put a limit on the dollar amount charged as IBP, enter a dollar amount into the Cap field. An IBP cap is recommended for Heavy Equipment and Farm Machinery auctions only. For further questions or to utilize this feature, please contact a Proxibid Account Manager.