closing tag is in template navbar
timefactors watches



TZ-UK Fundraiser
Results 1 to 24 of 24

Thread: British watch shops lose advantage of tax-free prices for tourists

  1. #1
    Grand Master abraxas's Avatar
    Join Date
    Oct 2002
    Location
    London
    Posts
    33,737

    British watch shops lose advantage of tax-free prices for tourists



    British watch shops lose advantage of tax-free prices for tourists
    https://usa.watchpro.com/british-wat...-for-tourists/
    Last edited by abraxas; 18th September 2020 at 18:27.

  2. #2
    Grand Master TaketheCannoli's Avatar
    Join Date
    Feb 2011
    Location
    UK
    Posts
    18,851
    You'd think HMG would be trying to attract wealthy foreign shoppers as they'll spend big in local communities while they're here. However this Government has made mistake after mistake after mistake since being elected so not too surprising I guess.

  3. #3
    Master
    Join Date
    Oct 2013
    Location
    Cumbria, UK
    Posts
    5,182
    Might help with availability with less big spenders buying coming in from abroad, because the UK has been the cheapest place to buy

  4. #4
    Master
    Join Date
    Apr 2015
    Location
    Devon
    Posts
    5,134
    Although current demand will have dropped as tourists aren’t travelling like they were, long term it might mean more people from the uk will be able to buy the currently harder to source watches. Can only be a good thing if you actually buy your watches to enjoy and wear, keeping them as investments might not be as good going forward.

  5. #5
    Craftsman
    Join Date
    Jan 2008
    Location
    salisbury
    Posts
    358
    Quote Originally Posted by TaketheCannoli View Post
    You'd think HMG would be trying to attract wealthy foreign shoppers as they'll spend big in local communities while they're here. However this Government has made mistake after mistake after mistake since being elected so not too surprising I guess.
    Guess your not a tory then! The tourists can still buy VAT free, it just means the item will be shipped rather than them being able to walk out the shop with them. If it saves on a costly process for the revenue, then good on them.

  6. #6
    Master
    Join Date
    Jan 2016
    Location
    Sussex, UK
    Posts
    5,128
    We all know that some UK residents were abusing the airport tax-free scheme. That’s money needed to fund the NHS and many other necessary things. So, about time.

  7. #7
    Master
    Join Date
    Dec 2010
    Location
    NW Leics
    Posts
    8,153
    Quote Originally Posted by casbar View Post
    Guess your not a tory then! The tourists can still buy VAT free, it just means the item will be shipped rather than them being able to walk out the shop with them. If it saves on a costly process for the revenue, then good on them.
    Indeed. Like the other supposed "mistakes", not actually a mistake.

  8. #8
    Grand Master TaketheCannoli's Avatar
    Join Date
    Feb 2011
    Location
    UK
    Posts
    18,851
    Visitor reluctance to post the item home at point of purchase instead of using / wearing it, the burden on the retailer of posting securely and dealing with 'not-received' claims and import costs dis-incentivising purchases could well have a negative impact. That would be a mistake, would it not?

    Oh, COVID mistakes, one after another, are pretty serious mistakes. Thinking the EU will bow to UK demands was a huge mistake. Selling Brexit on unfettered trade with NI was a mistake....actually it was a massive lie, rather than a mistake.

    Quote Originally Posted by monogroover View Post
    Indeed. Like the other supposed "mistakes", not actually a mistake.
    Last edited by TaketheCannoli; 17th September 2020 at 13:51.

  9. #9
    Master
    Join Date
    Apr 2015
    Location
    Stockton, Teesside, UK
    Posts
    1,496
    Quote Originally Posted by TaketheCannoli View Post

    Oh, COVID mistakes, one after another, are pretty serious mistakes. Thinking the EU will bow to UK demands was a huge mistake. Selling Brexit on unfettered trade with NI was a mistake....actually it was a massive lie, rather than a mistake.
    Are you suggesting that our esteemed leaders Boris & Cummings might have made a mistake? You're obviously one of those remoaners! Anyway, so what, no-one died did they? Oh, Covid, 40,000+ did. Its not that Boris lies, its just that he has no idea what the concept of 'truth' means.

  10. #10
    Craftsman
    Join Date
    Sep 2008
    Location
    London
    Posts
    327
    Quote Originally Posted by Simon Walton, MD of Berry's in Watch Pro's article
    Mr Walton fears that the plan to let tourists save VAT at the point of purchase will not work if they cannot take their new watches with them.

    “Not all tourists will want the items dispatched,” he predicts. “Chinese tourists don’t want items shipped as they have to pay high import duties that makes any tax saving ineffective,” he adds.
    So what. We shouldn't facilitate crooked tourists.

  11. #11
    Grand Master TaketheCannoli's Avatar
    Join Date
    Feb 2011
    Location
    UK
    Posts
    18,851
    Pedant ;)

    Quote Originally Posted by MrGrumpy View Post
    Are you suggesting that our esteemed leaders Boris & Cummings might have made a mistake? You're obviously one of those remoaners! Anyway, so what, no-one died did they? Oh, Covid, 40,000+ did. Its not that Boris lies, its just that he has no idea what the concept of 'truth' means.

  12. #12
    Master Christian's Avatar
    Join Date
    Dec 2008
    Location
    London
    Posts
    9,876
    Quote Originally Posted by paskinner View Post
    We all know that some UK residents were abusing the airport tax-free scheme. That’s money needed to fund the NHS and many other necessary things. So, about time.
    Those people will just shop in the foreign airports meanwhile the UK airports will shed a load of jobs because of this. Can’t see this being a net gain for the NHS.

  13. #13
    Master jukeboxs's Avatar
    Join Date
    Apr 2009
    Location
    Scotland
    Posts
    5,448
    Hopefully this will result in less tax dodging across the globe (from UK purchases). And maybe improve availability to boot.

    It only just dawned on me that Watch Talk doesn't actually stipulate "no politics or religion". You learn something new every day.

  14. #14
    Master
    Join Date
    Aug 2008
    Location
    SE
    Posts
    3,408
    Quote Originally Posted by Monkey Queen View Post
    So what. We shouldn't facilitate crooked tourists.

    Exactly, this is fantastic news and will greatly affect availability of certain watches. The Chinese goldmine finally running dry will teach retailers to do actual work, supplying customer service etc.

  15. #15
    Craftsman
    Join Date
    Jan 2018
    Location
    Jockland
    Posts
    731

    Tax evasion

    Quote Originally Posted by 744ER View Post
    Exactly, this is fantastic news and will greatly affect availability of certain watches. The Chinese goldmine finally running dry will teach retailers to do actual work, supplying customer service etc.
    100% agree. The MD from Berrys is basically condoning tax evasion from his Chinese clients. He is quite happy for them to splurge their cash in his shops with the tax free incentives and let them walk out bags full so as to avoid the import charges when they arrive back in China etc.

    Will be interesting to see the impact of this on the tourist spend within the UK luxury goods market but would assume it could be huge. What is the China import tax for Luxury watches and Vuitton bags!
    Last edited by Flasher; 17th September 2020 at 17:38. Reason: Error

  16. #16
    Master Christian's Avatar
    Join Date
    Dec 2008
    Location
    London
    Posts
    9,876
    Quote Originally Posted by Flasher View Post
    100% agree. The MD from Berrys is basically condoning tax evasion from his Chinese clients. He is quite happy for them to splurge their cash in his shops with the tax free incentives and let them walk out bags full so as to avoid the import charges when they arrive back in China etc.

    Will be interesting to see the impact of this on the tourist spend within the UK luxury goods market but would assume it could be huge. What is the China import tax for Luxury watches and Vuitton bags!
    Which airport does Berry’s have a shop at? Struggling to see how this ruling effects VAT-free shopping in the wider UK.

  17. #17
    Craftsman
    Join Date
    Jan 2019
    Location
    Sheffield
    Posts
    549
    Quote Originally Posted by paskinner View Post
    That’s money needed to fund the NHS and many other necessary things. So, about time.
    While true. The Article says global blue operates in France. Post Brexit, we will potentially be able to buy VAT free in Europe, and some people head back to the U.K. without declaring.

    How does that help? If VAT is lost on these transactions at airport by British buyers, WOS/Aurum groups profits suffer and in turn the tax paid.
    Last edited by Sean89; 17th September 2020 at 18:58.

  18. #18
    Master Christian's Avatar
    Join Date
    Dec 2008
    Location
    London
    Posts
    9,876
    Quote Originally Posted by Sean89 View Post
    While true. The Article says global blue operates in France. Post Brexit, we will potentially be able to buy VAT free in Europe, and some people head back to the U.K. without declaring.

    How does that help? If if VAT is lost on these transactions at airport by British buyers, WOS/Aurum groups profits suffer and in turn the tax paid.
    I agree, I think this isn’t as simple as people are making out, although I know TZ loves to hate the VAT-dodgers. There’s still going to be VAT-free shopping in the UK as in any country and the airport situation is unchanged elsewhere. If you are a tourist who specifically wants to airport shop, you’ll just avoid Heathrow and go to Schiphol or shop away from the airport. Now consider the job losses at Heathrow and you’ve got yet more unemployment around Hounslow...more people not paying tax and more people on universal credit.

    I assume the government has a good reason for this, but I don’t think our current leadership is very pro UK aviation. Seems like another hammer blow to an already hard hit industry. Sadly, there are plenty of other countries willing to step in though.

    Fully willing to admit, I’ve only read a brief summary and the only reason I’ve read for the change is an MP saying some airport shops hadn’t passed all of the savings onto customers...which seems a bit odd reasoning.
    Last edited by Christian; 17th September 2020 at 19:10.

  19. #19
    Journeyman
    Join Date
    Jul 2020
    Location
    London, UK
    Posts
    134
    The article doesn't make this entirely clear, but this move extends beyond airport shopping; the UK is ending the Retail Export Scheme, which is what allows overseas visitors/non-residents to show their passport when they make a purchase at a store in the UK and receive a VAT refund at the airport when they leave the country.

    I don't want to get into politics, but as some have mentioned, I don't think this is as straightforward a decision as some are making out. A tremendous amount of people come to the UK to spend money in our stores on shopping trips, which includes putting money into the economy not only in our shops but also hotels, restaurants, cabs, etc. Now it isn't true that all of them do it because they don't have to pay VAT on the items they buy, and many people will of course visit the UK and go shopping. But often it is an incentive for people to spend money here, as VAT at 20% is pretty high (particularly if you are coming from somewhere like the US where sales tax can be a percentage in the single digits). The upside I guess is that potentially there is a case to be made that fewer people will come in to buy expensive watches and there could be more supply for those of us who actually live here, which I agree is a positive thing. But I rather suspect the end result will likely be loss of revenue by businesses, loss of tourism, and the loss of jobs by way of the industry (Global Blue, etc.) that currently exists in the UK purely to facilitate VAT refunds.

    It also is unlikely to make any difference on international tax dodging as the same wealthy overseas tourists who schedule shopping trips in London can just make the trip to member states of the EU in future (as someone mentioned, Paris is one of them) where they will still benefit from VAT free shopping. Whatever else, it seems to me counterintuitive on the government's part in the midst of Brexit to effect a change that will render Paris and other EU cities more competitive as a place for shopping/tourism.

    Quote Originally Posted by Christian View Post
    Which airport does Berry’s have a shop at? Struggling to see how this ruling effects VAT-free shopping in the wider UK.
    Last edited by Lantenac06; 17th September 2020 at 19:39.

  20. #20
    Grand Master oldoakknives's Avatar
    Join Date
    Sep 2012
    Location
    United Kingdom
    Posts
    20,041
    Blog Entries
    1
    Quote Originally Posted by TaketheCannoli View Post
    You'd think HMG would be trying to attract wealthy foreign shoppers as they'll spend big in local communities while they're here. However this Government has made mistake after mistake after mistake since being elected so not too surprising I guess.
    Quote Originally Posted by TaketheCannoli View Post
    Visitor reluctance to post the item home at point of purchase instead of using / wearing it, the burden on the retailer of posting securely and dealing with 'not-received' claims and import costs dis-incentivising purchases could well have a negative impact. That would be a mistake, would it not?

    Oh, COVID mistakes, one after another, are pretty serious mistakes. Thinking the EU will bow to UK demands was a huge mistake. Selling Brexit on unfettered trade with NI was a mistake....actually it was a massive lie, rather than a mistake.
    Why don’t you take this rubbish to the BP.
    Started out with nothing. Still have most of it left.

  21. #21
    Master Christian's Avatar
    Join Date
    Dec 2008
    Location
    London
    Posts
    9,876
    I guess whatever the decision is, it seems pretty basic maths so I trust a government decision should benefit the UK, particularly with Brexit. I can’t see us doing this if it harms the states income?

    This thread had politics in it from the outset...one of those things where watch talk and politics combine.

  22. #22
    Grand Master TaketheCannoli's Avatar
    Join Date
    Feb 2011
    Location
    UK
    Posts
    18,851
    One man's rubbish is another man's fact. I'm off to the BP.

    Quote Originally Posted by oldoakknives View Post
    Why don’t you take this rubbish to the BP.

  23. #23
    Grand Master oldoakknives's Avatar
    Join Date
    Sep 2012
    Location
    United Kingdom
    Posts
    20,041
    Blog Entries
    1
    Quote Originally Posted by TaketheCannoli View Post
    One man's rubbish is another man's fact. I'm off to the BP.
    Apparently. Bye.
    Started out with nothing. Still have most of it left.

  24. #24
    Quote Originally Posted by paskinner View Post
    We all know that some UK residents were abusing the airport tax-free scheme. That’s money needed to fund the NHS and many other necessary things. So, about time.
    So that's a few million lost by people taking the mick out of this scheme. Irrelevant in the grand scheme of things - if large corporations paid the correct amount of corporation tax, that would be a benefit to our exchequer of at least 6 billion a year. That should be the focus, but the tories suck up to businesses too much.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Do Not Sell My Personal Information