How to Buy Vintage Wine at Auction: Understanding the Costs
Updated
Knowing how to buy vintage wine at auction means two things. You must account meticulously for all costs beyond the hammer price, and you must assess lot condition thoroughly. Auction houses like Sotheby's, Christie's, Bonhams, Zachys, and WineBid apply a buyer's premium. It ranges from 17% to 28% of the hammer price, depending on the house, location, and price tier. You are also responsible for applicable taxes, including VAT or sales tax, which vary by jurisdiction and lot status, such as "in bond" wines. Always remember that lots are sold "as is." Condition reports are often available, but they are opinions and not guarantees. Pay close attention to wine ullage levels and cork conditions, especially for older vintages, as these are critical factors for long-term holding. Finally, plan for collection, storage, and shipping, as these are your responsibility and incur additional charges.
What are the primary costs when buying vintage wine at auction?
Beyond the hammer price, your primary costs when buying vintage wine at auction include the buyer's premium and applicable taxes. The buyer's premium is a fee added to the hammer price of each lot you win. Its rate varies significantly by auction house, sale location, and the hammer price itself.
For example, Sotheby's charges a buyer’s premium of 24% plus an Overhead Premium of 1% on all hammer prices for Global Wines & Spirits sales, as stated by Sotheby's. For sales in New York, United Arab Emirates, or the Kingdom of Saudi Arabia, Sotheby's applies a 28% rate on hammer prices up to and including $2,000,000, 22% on amounts between $2,000,000 and $8,000,000, and 15% above $8,000,000. In London, Sotheby's charges 28% up to £1,500,000, 22% between £1,500,000 and £6,000,000, and 15% above £6,000,000. These rates, as specified by Sotheby's, exclude local taxes and any applicable artist resale rates.
Christie's London Conditions of Sale for Wine specify a buyer's premium of 25% of the hammer price for Wine, Spirits, and Cigars. VAT is payable on this premium at the applicable rate. Similarly, Christie's New York Conditions of Sale for Wine state a buyer's premium of 25% of the hammer price on each lot of wine. Taxes are payable on the premium at the applicable rate.
Bonhams charges a buyer's premium of 24% of the hammer price for Wine and Whisky sales in the United Kingdom. VAT at the current rate of 20% then applies to this premium, according to Bonhams. Zachys generally adds a 25% Buyer's Premium to the hammer price of each lot, unless otherwise indicated. WineBid applies a 17% buyer's premium to the final hammer price of all lots purchased through auction.
iDealwine, through its subsidiary International Wine Auction SARL (IWA SARL), charges a buyer's premium for auctions. As of March 2, 2023, this premium was 25.2% VAT included (21% excl. VAT). From March 27, 2026, it will be 25.8% incl. tax (21.5% excl. tax), as specified by iDealwine.
The following table summarizes buyer's premium rates for various auction houses:
| Auction House | Location/Category | Buyer's Premium Rate | Notes |
|---|---|---|---|
| Sotheby's | Global Wines & Spirits | 24% + 1% Overhead Premium | On all hammer prices |
| Sotheby's | New York / UAE / KSA | 28% up to $2,000,000, then 22% up to $8,000,000, then 15% above $8,000,000 | Excludes local taxes and artist resale rates |
| Sotheby's | London | 28% up to £1,500,000, then 22% up to £6,000,000, then 15% above £6,000,000 | Excludes local taxes and artist resale rates |
| Christie's | London Wine, Spirits and Cigars | 25% | VAT payable on premium |
| Christie's | New York Wine | 25% | Taxes payable on premium |
| Bonhams | UK Wine and Whisky | 24% | VAT at 20% added to premium |
| Zachys | General (unless indicated) | 25% | Plus applicable taxes |
| WineBid | All lots | 17% | Plus sales tax on hammer price and premium |
| iDealwine | Auctions (as of 27 March 2026) | 25.8% incl. tax (21.5% excl. tax) | Paid to operator of auction sales (IWA SARL) |
How do taxes and duties impact your all-in cost?
Taxes and duties significantly impact your all-in cost, varying by auction location, your residency, and the wine's status. The successful bidder is responsible for all applicable tax. That covers any VAT, GST sales or compensating use tax or equivalent tax, wherever such taxes may arise on the hammer price and the buyer’s premium, according to Christie's London.
In the UK, Christie's London notes that VAT is payable on the buyer's premium, and for some lots, VAT is also payable on the hammer price. Wines offered "in bond" (marked with a ‡ symbol) provide options. If you choose to buy in bond, no excise duty or clearance VAT applies to the hammer price. VAT still applies to the buyer's premium. If you choose to buy duty paid, your invoice picks up excise duty at current rates and clearance VAT on the duty-inclusive hammer price. Non-UK buyers may be eligible for VAT refunds on the buyer's premium if specific conditions are met. Refunds may also cover VAT on the hammer price for lots marked with † and symbols. No refunds are given if the total refund is under £100, as stated by Christie's London.
What sales tax applies in the United States?
For sales in New York, Christie's New York collects sales tax at a rate of 8.875% for any lot collected from Christie's in New York. For shipments to states other than New York, Florida, New Hampshire, and Wyoming, and for international locations, Christie's New York collects New York sales tax at 8.875%. That charge does not apply if a tax exemption is on file, or if specific conditions for international freight forwarders are met. For New Hampshire, Christie's collects an 8% fee on the hammer price plus buyer's premium (exclusive of sales tax) for wine shipments. The limit is twelve 9-liter cases per consumer per calendar year. For Wyoming, Christie's collects a 12% fee on the hammer price plus buyer's premium (exclusive of sales tax) for wine shipments. Wyoming limits them to 108 liters per household within any twelve-month period.
WineBid states that it collects sales tax on all purchases. WineBid works the tax out as a percentage of the entire price paid, including the hammer price and the buyer's premium. It does not apply to wines shipped internationally, or to specific "Direct Shipper States" where permits require collection and remittance of taxes per state requirements, such as Louisiana, Nevada, New Hampshire, Oregon, and Wyoming.
Zachys indicates that all bids placed by buyers are exclusive of any sales tax. For New York Live Auctions and New York Internet Auctions, title and ownership pass in New York. Zachys then collects New York sales tax, unless the property goes to a licensed freight forwarder for immediate shipment outside the United States. For Delaware auctions, Zachys notes that the State of Delaware does not impose sales tax on tangible personal property sold within the state. Zachys also warns that tariffs and import duties may be imposed or adjusted after purchase, and the buyer agrees to bear full responsibility for any additional fees.
iDealwine informs non-resident customers that customs and excise duties are not included in the buyer's premium and are charged in accordance with legislation. Some lots come to auction from people and entities that are not VAT registered. For those lots, tax is only due on the buyer’s commission collected by the organiser of the auction (IWA) on the winning bid (VAT on gross margin regime). For fixed-price purchases, standard VAT applies, but the gross margin regime may cover goods for resale. iDealwine's VAT invoicing is dynamic, adapting to the client's professional or private status and the shipping country.
To understand the full financial commitment, you can use our all-in cost calculator to factor in these complex charges.
How do you assess the condition of vintage wine?
Assessing the condition of vintage wine involves scrutinizing catalogue descriptions, paying particular attention to ullage levels, and understanding the inherent risks of older corks. Christie's London states that lots are sold "as is," meaning in their condition at the time of sale. Neither Christie's nor the seller makes any representation or warranty as to condition. Condition reports, while available, are opinions and may not refer to all faults. Images may not show a lot clearly. Buyers must make appropriate allowances for natural variations of ullages, conditions of cases, labels, corks, and wine. Christie's London accepts no returns for these variations.
What are the risks with old corks?
Christie's New York advises prospective buyers to personally examine any property of interest before the auction. Catalogue descriptions count as statements of opinion, not fact. References to damage are for guidance only and do not imply the absence of other defects. Christie's New York specifically notes that corks over 20 years old begin to lose their elasticity. Levels can change between cataloguing and sale. There is always a risk of cork failure with old wines, and due allowance must be made for this. Zachys echoes this, stating that all wines are sold "as-is," with descriptions based on opinion and not constituting warranties. Buyers are encouraged to inspect lots prior to purchase, acknowledging the risk of cork failure with old wines.
iDealwine provides indicative information regarding wine levels, and the condition or absence of capsules and labels. It cannot guarantee the condition of corks. The information on labels and back labels serves simply to identify the product. iDealwine's experts appraise wines, determining descriptive elements such as label state, fill level, capsule condition, and bottling origin. They may remove plastic film from bottles for appraisal. iDealwine removes bottles deemed unsuitable for sale or consumption. Those include bottles with levels "way below low shoulder," wine seepage past the cork, depigmentation, or labels that are too damaged. iDealwine also systematically tests cork resistance for vintages prior to the 2000 vintage, removing any bottles with depreciated or falling corks. For example, a bottle of Bordeaux from an older vintage would undergo this rigorous inspection.
For a deeper understanding of fill levels and their implications, consult our guide on wine ullage levels.
What are your responsibilities after a successful bid?
After a successful bid, you are responsible for prompt payment, arranging collection or shipping, and managing storage. Understanding these obligations is crucial for a smooth transaction when buying wine at auction.
Payment: Christie's London requires full payment of the purchase price by the end of the 7th calendar day following the auction. That price includes the hammer price, buyer's premium, and any duties or taxes. This payment excludes subsequent storage, packing, or carriage charges. Only the registered bidder can make the payment, and the buyer's name on the invoice cannot be changed. If you fail to pay by the due date, Christie's London is entitled to charge interest from the due date. The rate is 5% a year above the UK Lloyds Bank base rate. Christie's New York also expects immediate payment, with the full amount due by 4:30 p.m. on the 7th calendar day following the sale. Title to the lot does not pass until Christie's receives full and clear payment.
Zachys requires payment for all invoices immediately upon receipt. For Internet Auction and Live Auction purchases, Zachys automatically charges the credit card on file for the full invoice amount within 48 hours after the sale closes. For all other purchases, buyers must settle payments within 14 calendar days for live sales and within 7 calendar days for internet sales. After that, Zachys reserves the right to charge the buyer's credit card on file for any outstanding amounts. Zachys may cancel the sale for invoices remaining unpaid 31 days after the auction concludes. Note that Zachys charges a 2% processing fee for credit card payments. iDealwine states that payment is due once the order is confirmed. Any outstanding payment after 7 days will accrue interest at a rate equal to one and a half times the legal interest rate referenced in France. Furthermore, storage fees of €0.15 per bottle per day will accrue from the 31st day following the order confirmation. In cases of non-payment, iDealwine may charge a fee of 10% of the total order amount and a €75 fixed fee for administrative costs.
Collection, Shipping, and Storage: Christie's London advises that wines are located at their third-party wine storage facility, Crozier West Drayton, unless otherwise indicated. You must collect the lot promptly after making full and clear payment. If you do not collect a lot by the end of the 90th day following the auction date, storage costs apply at the rate set out on www.christies.com/en/help/buying-guide/storage-fees. Christie's London may also move the lot to another warehouse and charge transport and administration fees. While you must make all transport and shipping arrangements, Christie's can arrange packing, transport, and shipping for a fee.
Christie's New York states that all wines are held at The Wine Cellarage. Buyers must remove their property within 7 calendar days of the auction. If lots are not collected within 120 calendar days, they will be stored at the buyer's expense and risk with The Wine Cellarage. The buyer then agrees to their applicable terms and charges.
How much free storage do you get after buying?
WineBid places all purchased wines into storage at Global Storage Network (GSN). All customers receive a minimum of two months of free storage at GSN. "Collector" tier members receive four months, and "Pro" tier members receive six months of free storage. Purchases are never shipped automatically. You must schedule shipping or pick up from GSN. You need an appointment for curbside pick up.
Zachys specifies that title passes to the buyer in the state or region where the auction occurs. You must collect wines within 14 calendar days, or Zachys will move them to its own storage at your expense. Zachys can assist with packing, shipping, and insurance. iDealwine states that lots cannot be delivered until payment is fully received. You can only collect them on presentation of a "paid" receipt. Buyers can use iDealwine's shipping services or pick up their lots directly from iDealwine's warehouse. The transfer of ownership and risk occurs at the moment of collection or delivery. For consignors, storage is free for the first 6 months. After that, iDealwine removes lots from sale and charges storage fees of 1 Euro per month per bottle if no response arrives.
Considering these responsibilities, effective storing wine and planning for its transport are essential aspects of your acquisition strategy.
How do auction houses handle authenticity and condition claims?
Auction houses offer specific authenticity warranties and procedures for claims, but these are often limited in scope and duration. It is crucial to understand these terms when considering a fine wine investment.
Christie's London's authenticity warranty for wines and spirits applies within a narrow window. Within 21 days of the auction date, Christie's must receive written notice from the buyer that the lot was "short or ullaged" or that a catalogue statement of opinion was "not well founded." Within 14 days of such notice, Christie's must have the lots in its possession in the same condition as at the auction date. If the buyer then satisfies Christie's that the lot was notified and they can transfer a good and marketable title, Christie's will set aside the sale and refund the amount paid. However, the buyer has no rights under this condition if the defect was mentioned in the catalogue. The same applies if the catalogue description was in accordance with the then generally accepted opinion of scholars or experts. Rights also fall away if detection required a scientific process not generally accepted, or one that was unreasonably expensive or damaging at the auction date. The buyer cannot claim more than the amount paid for the lot, and the warranty is not assignable.
Christie's New York has a similar authenticity warranty for wine. Within 21 days of the sale date, Christie's must receive written notice from the buyer regarding a lot being "short or alleged" or a catalogue opinion not well-founded. Within 14 days of such notice, Christie's must have the lots in its possession in the same condition as at the sale date. The buyer must also satisfy Christie's of the notification and of the ability to transfer good title. Christie's will then set aside the sale and refund the amount paid. Similar exclusions apply as in London. The buyer has no rights if the defect was mentioned in the sale particulars, or if the description was in accordance with generally accepted expert opinion. The same holds if detection required an unfeasible scientific process at the time of sale. The buyer's claim is limited to the amount paid for the lot, excluding other expenses, and the warranty is not assignable. Christie's New York also states that a buyer may give written notice within 30 days after the sale that a lot is short or has suffered breakage. Christie's, at its sole discretion, may then rescind the sale and refund the purchase price.
WineBid explicitly states that all purchases are made 'as is', and they "do not offer refunds or exchanges." However, if you receive a bottle that does not match your invoice, WineBid asks you to email service@winebid.com with photos for resolution.
Zachys, to the fullest extent permitted by law,