HP exclusive means that the hammer price excludes tax, so any tax on the hammer price will be added to the subtotal on settlement. The balance due calculation on settlements is:
(Subtotal)-(Commission)-(Tax on commission)=Balance Due.
Some regions include tax in the hammer price of the lot. HP inclusive means that the hammer price already includes tax, so any tax on the hammer price will NOT be added to the subtotal on settlement. The balance due calculation on settlements is:
(Subtotal)-(Commission)= Balance Due.
For inclusive hammer price tax, you can calculate the hammer price without tax using this calculation: HP-(HP/1+Tax percentage)
Here's an example of a settlement with HP tax (VAT) inclusive:
