VAT on importing story

[Devonian]

Came across this just now on Rolex forums. The old VAT debate comes up here quite often so I thought I’d post it:

https://www.rolexforums.com/showthread.php?t=564739

[Devonian]

[UK Border] Watch GMT MASTER II BLNR : Seizure Information Notice
Good evening,

Not the best way to join this forum.

I am writing here to get any help, feedback according the situation I am facing to.
I bought a Rolex GMT MASTER II BLNR in Geneva (duty shop at the airport), and pay the watch tax free (7870 CHF, instead of 8500CHF).
I am a French, uk resident on a UK taxing system, airline pilot.

I collected this watch on a personal trip to Geneva once it arrived.
The lady at the shop ask me to sign the "export document in tourist trafic" and transferred it to the Swiss custom.
I took a flight to London Gatwick, wearing my Rolex and exit the airport normally after passport control without declaring anything. I thought the paper sent by the shop will be enough, this was done by a friend two years ago and he didn't have any issue afterwards.
Yesterday, I was operating a flight from another airport in London, when I came back to the passport control after my duty, the agent asked me to wait because a notification was issued.
I have been transferred with 3 border officers and they start to ask me questions :
-do you have any other bags? no
-are you aware of the content? Yes
-any sharp item? No
-allowances (cigarettes/alcool)? No
-large amount of cash? No
-expensive item ? Yes

I then explain them my situation, watch collected the day before on a personal trip to Switzerland, the way I paid it... after a good 1h, they seized my watch and give me a "seizure information notice", telling me that I have 30 days to ask for my things back, claim in front of a magister. He also gave me a paper with the explanation and to who I can send the reclamation letter. I should have declared it upon arrival in Gatwick as it is above the legal good allowance of 390£.
I found the agents quite rude, I found example on the internet and people who faced the same situation was given the possibility to pay the VAT with the custom.

Every time i am now passing through the passport control I get stopped and have to explain my situation, which is painful with my job and hope having no professional issues.

I am now looking for possibilities to get my item back. I phoned the gov custom and border but didn't help me except reading the document...
Trying to get in touch with solicitors, price can go up to 2000GBP + maybe VAT... other solicitors ask for 250£/h or fixed 1000GBp.

I am not a UK citizen and not familiar with the law.
What is the type of my infraction? by buying a good in excess of 390£ outside the EU and bringing it into the United Kingdom without declaring it on arrival because I was not aware.

I have been honnest all the time with the border/custom officers.

If anyone can help in any stage, is it worth it to get the help of solicitors ? Or is it just an easy business?
What are the chance to get my item back, and at which price? (VAT + penalty fees, court, solicitors...).


Feel free to contact by private messages, I will try to do my best to help in return people who helped me.

Best regards,
AV

[bighume]

Hope you get your watch back and I all works out.


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[reggie747]

Yeah, I read that. I'll give the guy the benefit of the doubt for his apparent naivety but who knows what he was thinking ?

The other side of the coin is, he's a pilot and surely he must have a handle on countries, boundaries, taxation, duty ?? Just a little bit like...

[Onelasttime]

Hope you get your watch back and I all works out.


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Who are you talking to? The OP is passing on a story from another forum.

[Jamie.Loader]

I actually work in the UK airports in one of the tax free shops. What we always advise passengers purchasing with us (because this is what we are told ourselves) is that anything purchased any where in the world, if no tax was paid on it, and its over the value of £145, when returning to the UK as a UK resident, you are supposed to declare the watch. As he hasn't declared it, he can get it back but it will incur a fine. If he didn't live and work in the UK, they couldn't make him declare it and have no right to seize it.

[reggie747]

Who are you talking to? The OP is passing on a story from another forum.

Run Rabbit, run ..........

[walkerwek1958]

I find it hard to believe he's been naïve, I`m sure he must've known the watch would be subject to UK import tax and I suspect he's simply decided he could get away6 with it.

My advice to him is to grovel, I would've thought they'd settle for charging him the 20% tax and leaving it at that, but given his occupation perhaps the authorities will take a sterner line with him.

Rule number one of rule-breaking: if you're going too break a rule be sure you know exactly what the rule is and what the consequences of being caught will be.

Paul

[Woody74]

I actually work in the UK airports in one of the tax free shops. What we always advise passengers purchasing with us (because this is what we are told ourselves) is that anything purchased any where in the world, if no tax was paid on it, and its over the value of £145, when returning to the UK as a UK resident, you are supposed to declare the watch. As he hasn't declared it, he can get it back but it will incur a fine. If he didn't live and work in the UK, they couldn't make him declare it and have no right to seize it.

I would just add that if the item is purchased outside the EU then it doesn't matter whether you have paid local tax or not.......if you are resident in the UK, and the item is in excess of your personal allowance, then you are still required to declare the item to Customs. I guess this is what happened to the pilot who had his watch seized. Purchased an item outside the EU, paid tax on the purchase (maybe) but is resident in UK and therefore needs to declare the item. It is not complicated......just painful if you get caught trying to break the rules.

[markrlondon]

Yeah, I read that. I'll give the guy the benefit of the doubt for his apparent naivety but who knows what he was thinking ?

The other side of the coin is, he's a pilot and surely he must have a handle on countries, boundaries, taxation, duty ?? Just a little bit like...

Yup, he does seem remarkably naive in a number of areas for a pilot. But apparently he's also only 21 and a lot of 21 year olds are naive.

[markrlondon]

I don't think there's anything very remarkable here (except for the naivety of the poster of the original thread) but it does appear to confirm one thing: That Swiss customs[1] can (and apparently did in his case) transmit information on outgoing duty free buyers to UK customs. This is worthy of note.




Footnote:-
1: I say "Swiss customs" but it was the shop that apparently took his details when he bought the watch. I am assuming that the shop sends the details to Swiss customs who presumably pass them on.

[Devonian]

Hope you get your watch back and I all works out.


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Thanks but it’s not mine. I just read the story and passed it on as the VAT issue comes up here from time to time.

The days of me being 21 and a pilot are long gone!

[Neilw3030]

I don't think there's anything very remarkable here (except for the naivety of the poster of the original thread) but it does appear to confirm one thing: That Swiss customs[1] can (and apparently did in his case) transmit information on outgoing duty free buyers to UK customs. This is worthy of note.
Footnote:-
1: I say "Swiss customs" but it was the shop that apparently took his details when he bough the watch. I am assuming that the shops sends the details to Swiss customs who presumably pass them on.

This is how i read it as well, he mentions there are notices ??
Is this normal practice that a duty free shop notifies custom and excise to watch (no pun intended) out for Joe Bloggs as he made a large purchase airside.
If that is the case a lot of people are being caught daily surely, or is it a case of when checking his baggage a Rolex box was found, who knows??

[S.L]

This is how i read it as well, he mentions there are notices ??
Is this normal practice that a duty free shop notifies custom and excise to watch (no pun intended) out for Joe Bloggs as he made a large purchase airside.
If that is the case a lot of people are being caught daily surely, or is it a case of when checking his baggage a Rolex box was found, who knows??

It's hearsay but I've heard this being told before and specifically in relation to watches purchased in Switzerland, never from anywwhere else. Perhaps they have their own routines concerning this kind of reporting?

[MB2]

I expect he claimed the tax back via Swiss Govt. When I was in Zurich they were telling people in shops to pay the 9% VAT and be happy as if you try to claim the CH VAT back you would have trouble in Home county. This was in LV looking at a wallet so it seems they are as joined up on VAT refunds as they warned us.


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[Neilw3030]

I expect he claimed the tax back via Swiss Govt. When I was in Zurich they were telling people in shops to pay the 9% VAT and be happy as if you try to claim the CH VAT back you would have trouble in Home county. This was in LV looking at a wallet so it seems they are as joined up on VAT refunds as they warned us.
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That would make sense, having his cake and eating it.
Wonder if that works in most countries, claim the purchase tax back at the airport when leaving your holiday destination to have your collar felt when you return home.

[Alansmithee]

The other issue with this sort of thing that many people don't know is that if you have an expense item like this and it gets stolen, your insurance (if they are on the ball) may tell you it's not legally held and not pay out.


If you go to the ombudsman, you might get lucky and be paid the value of what it cost you in the country you bought it from but not the UK value.

[Hood]

A few quality posts in TRF thread regards the Swiss
"9000 dollar watch-ratted out immediately
90million dollar secret bank account -as much privacy as they can give"
or the reference to their Nazi gold stash.
Very good.

[33JS]

I'm 50/50 whether I believe that story to be honest...

[-Ally-]

Dumb frog deserved to be nabbed.

[Chris_in_the_UK]

Thanks but it’s not mine. I just read the story and passed it on as the VAT issue comes up here from time to time.

The days of me being 21 and a pilot are long gone!

But Swiss customs have a reputation for this and why are you sharing a naive third party problem?

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