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The final auction price is VAT inclusive if you're going to charge it.
That doesn't make any sense at all.
It means that I am either penalised (as the seller) if I am selling to somebody to whom VAT applies (e.g. bidding goes to 5,000 pounds but I will actually only get 5,000-VAT if I am selling to a buyer who has to pay me VAT) or the buyer is penalised for having to pay more than they should if they're in a non-VATeable situation.
Surely a situation where the bid says (for example) "5,000 pounds (+VAT where applicable)" would be the clearest and least controversial option. That way, the seller always knows what they're going to receive (5,000 pounds) and the VAT is just a "thing" for the buyer to deal with, just like they have to deal with VAT on everything else they buy. Or not, if it doesn't apply to them...