Buying a watch at auction: buyer's premium, VAT and true cost
27% at Phillips and Christie's, 28% at Sotheby's, 27% before VAT at Artcurial: the buyer's premiums of the major houses, import VAT, and how to work out the price you actually pay, with a worked example.
Buying · · 8 min read
The price announced when the hammer falls is never the price you will pay. Between the buyer's premium, VAT, platform fees, shipping and, for a sale in Geneva or New York, import VAT, the gap routinely reaches a third of the hammer price, sometimes more. This guide goes through each item, with the current schedules of the main houses, then a worked example comparing the same bid in Paris and in Geneva.
What you pay on top of the hammer
A winning bid always breaks down the same way:
- The [hammer price](/glossaire/prix-marteau): the last amount announced by the auctioneer. This is what goes to the seller, before the seller's own commission.
- The [buyer's premium](/glossaire/frais-acheteur): a percentage of the hammer price, set by the house in its conditions of sale and not negotiable.
- Taxes: VAT on the premium depending on where the sale takes place, and import VAT if the watch enters the European Union.
- Ancillary costs: a surcharge for bidding through a third-party online platform, insured shipping, storage beyond a set period, sometimes a processing fee depending on how you pay.
Results published by the major houses generally include the buyer's premium. When you read that a watch "sold for 25,400 francs", the hammer fell lower: keep this in mind whenever you compare an auction result with a market value.
Buyer's premiums at the major houses in 2026
Houses apply a sliding scale by bands: the first rate applies up to a threshold, the next one to the portion above it. For a watch worth a few thousand to a few hundred thousand euros, only the first rate matters.
| House | Where | First band | Next bands | Source and date |
|---|---|---|---|---|
| Phillips (watches) | Geneva, Hong Kong, New York | 27% up to CHF 1,600,000, $2,000,000 or HK$15,000,000 | 21%, then 14.5% above CHF 7,000,000, $8,000,000 or HK$60,000,000 | Phillips schedule effective 12 April 2026, excluding local taxes |
| Christie's | Geneva, Hong Kong, New York, online | 27% up to $1,500,000 | 22% up to $8,000,000, then 15% | increase of September 2025; Swiss franc thresholds to be read in each sale's conditions |
| Sotheby's | Geneva, Hong Kong, New York, online | 28% up to $2,000,000 | 22% up to $8,000,000, then 15% | worldwide schedule of 13 February 2026 |
| Artcurial | Paris, Monte-Carlo | 27% + VAT up to €850,000, i.e. 32.4% including VAT | 21% + VAT up to €6,000,000, then 14.5% + VAT | 2026 general conditions of purchase |
| Drouot houses (Ader, Millon…) | Paris | each house's own schedule | variable | printed at the front or back of each catalogue |
Two remarks. First, Phillips applies a separate schedule to watches, slightly lower than that of its other departments (29% on the first band). Second, the rates of Phillips, Christie's and Sotheby's exclude local taxes: in Geneva, Swiss VAT may be added for a lot delivered in Switzerland, whereas it is not normally due on an exported lot, with proof of export. Always check the schedule printed in the catalogue of the sale you are interested in: the houses have changed it several times since 2025.
The costs that still come on top
Beyond the buyer's premium, several smaller items add to the bill:
- Live bidding platforms. Bidding on a Paris sale through Drouot Digital or Interenchères often triggers a surcharge, 1.5% before VAT for the former and 3% before VAT for the latter in the conditions of sale we consulted. Artcurial also provides for additional fees for platforms other than its own online service.
- Imported lots. At Artcurial, a watch coming from outside the European Union, flagged in the catalogue, carries import-related costs of 20% of the hammer price, on top of the buyer's premium.
- Payment. Some cards carry a processing fee (1.85% for American Express at Artcurial).
- Storage. A lot that is not collected is charged after a set period: at Artcurial, €50 before VAT per week per lot from the 90th day.
- Insured shipping, at your expense from the moment of the sale: once the hammer falls, the watch travels at your risk.
Import VAT, the item people forget
A watch bought in Geneva, Hong Kong or New York and delivered to France enters the European Union. It is then subject to import VAT, 20% in France, calculated on the customs value: the price paid, buyer's premium included, plus shipping to the border. Depending on the watch's origin, customs duties may be added; the rate is checked in the EU customs tariff, using the goods code.
The major houses generally offer to arrange shipping and formalities, which makes export from Switzerland and customs clearance easier. The cost stays the same, though: ask for a quote before the sale rather than after.
Worked example: the same bid in Paris and in Geneva
Take a watch hammered at 10,000, in euros at Artcurial in Paris (lot originating in the EU) and in Swiss francs at Phillips in Geneva, delivered to France. Amounts are rounded; shipping, any platform surcharge and customs duties are not included.
| Item | Artcurial, Paris | Phillips, Geneva |
|---|---|---|
| Hammer price | €10,000 | CHF 10,000 |
| Buyer's premium | €2,700 before VAT + €540 VAT = €3,240 | CHF 2,700 |
| Price with premium | €13,240 | CHF 12,700 |
| Import VAT in France (20%) | not applicable, the watch is already in the EU | about CHF 2,540, converted into euros at clearance |
| Cost before shipping and duties | €13,240 | about CHF 15,240 |
| Gap over the hammer price | + 32.4% | about + 52% |
The lesson fits on one line: for the same hammer price, a watch bought outside the EU costs significantly more once it reaches France. It is this figure, not the hammer price, that you should set against the model's market value before fixing your limit.
Condition report and absentee bid, the careful buyer's two tools
The [condition report](/glossaire/rapport-d-etat) is free and can be requested from the watch department. It supplements the catalogue description: state of the case and lugs, original or restored dial, hands, running at the time of inspection, presence of the box and papers. Read it closely: second-hand watches sold at auction are sold as they are, without the statutory conformity guarantee of consumer law, and water resistance is generally not guaranteed. A specific question about polishing or the last service usually gets a specific answer.
The [absentee bid](/glossaire/ordre-d-achat) sets in advance the maximum amount the house will bid on your behalf. The house bids in your best interest: if nobody competes for the lot, you get it one increment above the previous bid, not at your maximum. At Artcurial, where amounts are identical, the bid received first wins. The key point is that the bid is expressed as a hammer price: for an all-in budget of €10,000 in Paris, with a premium of 32.4% including VAT, your hammer limit is about €7,550.
Before you bid: the checklist
- Open an account and have your identity verified; for an important lot, the house may ask for a bank reference or a deposit.
- Read the description and request the condition report, asking your own questions.
- Check that the watch is consistent: reference, serial number, dial and hands from the same period. A frankenwatch sometimes gets through on a catalogue photo.
- Look at the [provenance](/glossaire/provenance): documented first owner, invoice, archive extract. It can justify a gap with the market value, but only if it is proven.
- Calculate the full cost with the catalogue schedule, VAT and shipping, then compare it with the model's value.
- Choose how to bid: in the room, by phone, live online or by absentee bid.
- Plan payment and collection: settlement is due shortly after the sale, and the watch is only released once the price has been paid in full.
For the physical checks, our guide to buying a pre-owned watch applies at auction too.
For which watches is an auction worth it?
With an extra 30 to 50% on top of the hammer, auction is not the cheapest channel for an everyday watch: a recent Submariner is more easily found at a dealer or from a private seller. It makes sense for rare or vintage pieces, which are almost unavailable elsewhere: vintage Daytona, older Calatrava models, sold-out limited series. The house then takes responsibility for the description, which is worth something. Our review of auction records 2025 and 2026 shows what these sales can achieve, and our calendar of the autumn 2026 sales gives the upcoming dates.
Where to read the official schedules
- Phillips: schedule and conditions of sale on phillips.com
- Christie's: conditions of sale on christies.com
- Sotheby's: conditions of sale on sothebys.com
- Artcurial: general conditions of purchase on artcurial.com
In short
At auction, the hammer price is only a starting point: allow 27 to 28% buyer's premium at the major international houses, 32.4% including VAT at Artcurial, and up to 20% import VAT on top for a purchase outside the EU. Set your limit from the full cost, never from the hammer, and compare it with the market value: check the watch's value before you raise your hand.
