A buyers premium is an additional charge on the hammer price of an auction item or lot that the winning bidder is required to pay in addition to the winning bid announced. The buyers premium is a percentage additional charge on the hammer price of the lot that is paid by the winning bidder. The percentage amount of the buyers premium is dependent on the auction house, but it usually ranges from 10-30% in fine art auctions. The amount of the buyers premium is normally stated in the auction house terms and conditions. The buyers premium is charged by the auctioneer as a remuneration to cover the costs of running the auction house and its future auctions. The buyers premium is used to enhance the customer experience and to operate the auction efficiently. The buyers premium is not an additional tax, but an additional charge. The buyers premium is paid to the seller at the close of the auction. The buyers premium is added to the invoice at the close of the auction, along with other fees such as sales tax or shipping. The buyers premium is a fee determined by the seller and is paid to the seller at the close of the auction. The amount of the buyers premium may be a percentage of the auction price or a flat fee.