If an item sells for $1000:
Buyer pays hammer price + $50 prem + $330 lot fee. Total = $1380
Seller pays $50 commission + $330 lot fee + $10 insurance. Net = $610
If an item sells for $10,000:
Buyer pays hammer price + $500 prem + $330 lot fee. Total = $10,830
Seller pays $500 commission + $330 lot fee + $100 insurance. Net = $9020
If an item sells for $50,000:
Buyer pays hammer price + $2500 prem + $330 lot fee. Total = $52,830
Seller pays $2500 commission + $330 lot fee + $500 insurance. Net = $46,670
If an item sells for $1,000,000
Buyer pays hammer price + $50,000 prem + $1000 lot fee. Total = $1,051,000
Seller pays $50,000 commission + $1000 lot fee + $10,000 insurance.
Net = $939,000
Buying Tax Free
As FAB is an auction house, with the sale officially taking place on Hong Kong soil, local rules apply. This means that a dealer in Mayfair selling a painting through FAB would have it delivered for appraisal to consultant Rupert Maas.
He would then value it for consignment and take possession of it until after the sale. If it sold to a private buyer in Kensington, it could then be delivered to them, again free of charge. Legally the transaction would attract no VAT, copyright fees or Resale Right because the sale would have taken place legally in Hong Kong.
