This article describes the processes for applying fees, Sales Tax, and an Internet Buyer's Premium to auctions not using atgPay. For information related to taxes when using atgPay, see atgPay: Internet Sales Tax.
This article contains the following sections:
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.
Making Fees Taxable
The order the fees appear in is the order in which they will be applied. This order can be used to apply Sales Tax to other fees or make them exempt.
If Sales Tax is applied last and is applied to the Running Total (see the example below), all of the fees on the invoice will be taxed.
However, if Sales Tax is applied before another fee (such as Buyer's Premium) the fees listed after the Sales Tax will not be taxed, even if the Sales Tax has been applied to the Running Total (see example below).
Internet and Buyer's Premiums
Auction houses can choose to have their Premiums appear as "Internet Premium" or "Buyer's Premium" as either can be charged to online bidders.
For auction companies that choose to have a 0% 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 Seller Support or an Account Manager.
Tiered Premiums
If the Internet or Buyer's Premium is set to appear as "Tiered", rather than listing a specific amount, it will just appear as "Tiered" when viewed by bidders.
When hovering over the "Tiered" link, bidders will see the following pop-up: "This auction uses a tiered buyer's premium. See Terms & Conditions and Payment Instructions below for full details."
To enable a tiered Premium, check the Display Buyer's Premium as "Tiered" checkbox under the event Listing.
The auction house should then add specifics of the tiered Buyer's Premium under the event's Payment & Terms.
After the event, the auction house will need to manually adjust the Premiums on winning bidder invoices to reflect the appropriate rate.