Buying a new watch in EU (in person) - VAT question

[Doug86]

Hello,

I wondered if I could get a sanity check from people that may have gone through this process already, post-brexit.

If I (a UK citizen) travel to an EU country and want to buy a new watch. Am I able to claim that countries VAT back at the airport when I leave to come home?
Global Blue: https://refund.globalblue.com/web/fa...gn=hp_carousel


Let's take an example:
I buy a watch for €10,000 in an EU country, that has a tax rate of 20%. Can I claim the €2,000 back at the airport?
Are there any further things I need to do when I return to the UK?

[ben4watches]

No idea if you can claim the local tax back, but you will have to pay 20% when you arrive in the uk.

Happy days

[Normunds]

You will not get back 20%, but about 15%, because of GlobalBlue takes their cut.

Then you have to pay VAT in UK, unless item is cheaper than around £300 (check with customs, I don't recall what is the limit)

[Scepticalist]

An edge case I know, but if I as a Uk resident bought tax free in Spain then left the item in our flat there, is VAT liable anywhere?

[PhilipK]

I buy a watch for €10,000 in an EU country, that has a tax rate of 20%. Can I claim the €2,000 back at the airport?

If you bought at item at €10,000 which included 20% tax, then you would have paid €1,677.67 tax, and the pre-tax price would have been €8,333.33.

[Dougal]

Then you have to pay VAT in UK, unless item is cheaper than around £300 (check with customs, I don't recall what is the limit)

I’m not certain but thought the import tax free limit was £125.

Above this value, there’s both VAT and import duties, plus the courier’s charge. It’s not easy to calculate the cost of buying from the EU now we’re in the sunlit uplands.

[Kingstepper]

I’m not certain but thought the import tax free limit was £125.

Above this value, there’s both VAT and import duties, plus the courier’s charge. It’s not easy to calculate the cost of buying from the EU now we’re in the sunlit uplands.

Effectively no duty on watches and the OP is visiting EU so no courier and aren't limits different for purchases by visitors?

[MartynJC (UK)]

Quick answer - get a VAT refund
from the retailer! Or stamped form and then You have to get your documents stamped by a customs officer at the point of exit of the EU.

As others have said - you need to pay the UK 20% VAT on entry to the UK - so it all works out much the same Nett payment - factor in x-rates and admin costs charged for the service and you may as well buy in UK unless there is some deal happing you know about in EU. There may be some desirable watch only available in EU for example.

VAT refunds for non-EU tourists

EU retailers can provide a VAT refund for goods sold to non-EU tourists when exporting them. Specifically this covers:

• Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU.
• EU nationals living outside the EU (who can prove this with a residence permit or similar).

Conditions

• The tourists must provide proof of residence (e.g. non-EU passport or residence permit)
• The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this.
• The value of the goods bought must be above acertain minimum (set by each EU country).
• Retailers can either refund the VAT directly or use an intermediary. One or other of them may charge afee, deductible from the refunded VAT amount.

More on VAT refunds for non-EU touristsSearch for available translations of the preceding link

[Wolfman53]

I have just purchased a watch from an online retailer in Germany which is currently in transit with UPS.
How and when do I pay the UK VAT and customs?
Will I get an Invoice via email prior to delivery?
Thanks

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[ben4watches]

Depending on the courier used you will other be billed prior to delivery so the package can be released or it will be delivered and you will invoiced at a later date.

I have just purchased a watch from an online retailer in Germany which is currently in transit with UPS.
How and when do I pay the UK VAT and customs?
Will I get an Invoice via email prior to delivery?
Thanks

Sent from my SM-G780G using Tapatalk

[Wolfman53]

Depending on the courier used you will other be billed prior to delivery so the package can be released or it will be delivered and you will invoiced at a later date.

Thank you! All will become clear in the next few days then!

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[barneygumble]

Hypothetically, if you got a VAT refund at the airport or from the the retailer, and wore the watch on your wrist back to Britain, would the British authorities know that you've benefitted from this refund?

[TaketheCannoli]

I've always wondered about this. If I bought a watch abroad I'd simply wear it for travelling home with the box in the luggage. Surely it's as easy as that?

[25807st]

I've always wondered about this. If I bought a watch abroad I'd simply wear it for travelling home with the box in the luggage. Surely it's as easy as that?

You could also post the box and papers back to yourself and fly back with only the watch in your possession... Next time I am in USA I'm planning on buying a couple of watches and doing this as they tend to be a fair bit cheaper over there

[MartynJC (UK)]

I've always wondered about this. If I bought a watch abroad I'd simply wear it for travelling home with the box in the luggage. Surely it's as easy as that?

You could also post the box and papers back to yourself and fly back with only the watch in your possession... Next time I am in USA I'm planning on buying a couple of watches and doing this as they tend to be a fair bit cheaper over there

This is a public facing part of the forum. If you pay the VAT on entry that’s fine. Else, I would be very careful posting that you are proposing TAX EVASION. Best to keep that to yourself?

BTW - often in USA Malls there are dedicated tax return areas to get the tax back straight away if you have the correct documents with you (see gov site above for details)

This topic has been done to death already quite a few times. I don’t think our forum owner promotes illegal practices.

[MartynJC (UK)]

Hello,

I wondered if I could get a sanity check from people that may have gone through this process already, post-brexit.

If I (a UK citizen) travel to an EU country and want to buy a new watch. Am I able to claim that countries VAT back at the airport when I leave to come home?
Global Blue: https://refund.globalblue.com/web/fa...gn=hp_carousel


Let's take an example:
I buy a watch for €10,000 in an EU country, that has a tax rate of 20%. Can I claim the €2,000 back at the airport?
Are there any further things I need to do when I return to the UK?

OP. I see aanswers are provided in that link! (If the shops are in the global blue scheme) Use the app to get quick refund as you leave the EU.

I wonder if there is a reciprocal App for visitors to the UK from the EU as I emigrate soon!

well UK .gov have well and truelly closed that door (how to promote tourism and equality with 3rd countries - not)

“You can only buy tax-free goods from shops in Great Britain (England, Wales and Scotland) if they’re delivered straight to an address outside the UK. Check with the retailer if they offer this service.“

Martyn.

Anyway enjoy your trip to EU wherever you go and that app looks like it does the legwork for you!

[Rob153]

This is a public facing part of the forum. If you pay the VAT on entry that’s fine. Else, I would be very careful posting that you are proposing TAX EVASION. Best to keep that to yourself?

BTW - often in USA Malls there are dedicated tax return areas to get the tax back straight away if you have the correct documents with you (see gov site above for details)

This topic has been done to death already quite a few times. I don’t think our forum owner promotes illegal practices.

+1 to this-

I’m sure there was a case reference an Airline Pilot who got caught bringing in a Rolex Sub or GMT, got pulled in by U.K. Customs.

I’ll see if I can find a link…..

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

[Kingstepper]

I've always wondered about this. If I bought a watch abroad I'd simply wear it for travelling home with the box in the luggage. Surely it's as easy as that?

Might as well also put watch in the luggage.

[David_D]

An edge case I know, but if I as a Uk resident bought tax free in Spain then left the item in our flat there, is VAT liable anywhere?

You’d only be entitled to buy tax-free if you were going to export the watch; it’s not the fact that you are a non-resident. So, in your example, the watch shouldn’t have been sold Ex-Spanish VAT.

That’s my understanding. Not sure how the mechanics of it works.

[Kingstepper]

You’d only be entitled to buy tax-free if you were going to export the watch; it’s not the fact that you are a non-resident. So, in your example, the watch shouldn’t have been sold Ex-Spanish VAT.

That’s my understanding. Not sure how the mechanics of it works.

Thought VAT was paid on purchase and claimed back later on export of the item (and presented at the border within a certain timescale).

[wangas]

Does anyone know if preowned watch dealers in Europe charge VAT and whether they would deduct this before shipping to the UK? Thanks!

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[Raffe]

Does anyone know if preowned watch dealers in Europe charge VAT and whether they would deduct this before shipping to the UK? Thanks!

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Not really.

If they sell on behalf of a client, there is no vat, and if they sell what they bought from a client the vat is only due on the markup and they don't need to disclose it. So you won't have vat on the invoice either way.

[pdeeghc]

In addition to 20%vat on import to U.K. you’d also have to pay duty, which is calculated based on whether the item is manual or electronic watch etc. Get advice would be my opinion!!


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[PhilipK]

In addition to 20%vat on import to U.K. you’d also have to pay duty, which is calculated based on whether the item is manual or electronic watch etc. Get advice would be my opinion!!

As already mentioned above in post #7, there is effectively no duty payable on single wristwatches being imported into the UK.

[Dougal]

Why isn’t duty payable for watches? Post-Brexit, I’ve had to buy some stuff from the EU, such as motorcycle clothing and parts. Everything had import duty (plus VAT) added to it.

[Scepticalist]

There is duty, but it's miniscule in comparison to the VAT

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[Raffe]

Why isn’t duty payable for watches? Post-Brexit, I’ve had to buy some stuff from the EU, such as motorcycle clothing and parts. Everything had import duty (plus VAT) added to it.

https://www.gov.uk/trade-tariff

[barneygumble]

There is duty, but it's miniscule in comparison to the VAT

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If you were having this delivered by FedEx or whatever, would they charge you twenty quid to process that 20p of duty?

[ozzyb123]

In short, it’s not worth the hassle. Just buy it locally and relax?


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[David_D]

Thought VAT was paid on purchase and claimed back later on export of the item (and presented at the border within a certain timescale).

No idea. That’s what I meant when I said “Not sure how the mechanics of it works”. Key point is that no Overseas VAT relief would be available if the watch never left the country.

[snowman]

A friend of mine, many years ago, bought a decent watch (not sure what now) and decided to dodge the VAT by wearing it.

Unfortunately he kept the packaging and receipt in his luggage and got a spot check.

Result, VAT paid and the watch ended up costing more than if he'd bought it in the UK.

That said, it's very unusual to get a spot check these days (or even to see customs officials in the green channel).

M

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[Raffe]

A friend of mine, many years ago, bought a decent watch (not sure what now) and decided to dodge the VAT by wearing it.

Unfortunately he kept the packaging and receipt in his luggage and got a spot check.

Result, VAT paid and the watch ended up costing more than if he'd bought it in the UK.

That said, it's very unusual to get a spot check these days (or even to see customs officials in the green channel).

M

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Is your friend's name Karl-Heinz Rummenigge?

https://www.dw.com/en/german-authori...ine/a-17218422

[Doug86]

Thank you all for the insights, it does look like there are defined routes for this and I'll see if the opportunity presents itself later this month.

[MartynJC (UK)]

If you were having this delivered by FedEx or whatever, would they charge you twenty quid to process that 20p of duty?

. Of course + the 20% VAT.

[MartynJC (UK)]

An edge case I know, but if I as a Uk resident bought tax free in Spain then left the item in our flat there, is VAT liable anywhere?

Basically EU VAT is payable as it cannot be reclaimed -

• The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this.

[ryanb741]

Just to point out that not only is VAT evasion illegal but HMRC are about the worst people to get on the wrong side of unless you want the forces of darkness unleashed on any tax return you submit in future and to get stopped by customs every time you re-enter the country due to being on their watch list. Isn't worth it and on an expensive watch where the VAT evaded may be in the thousands, well just imagine the treatment you'd get if you stole a couple of thousand pounds from a company and how the Police would look upon that. A bit different to smuggling a bottle of undeclared Whisky through let's put it that way.

That being said if you can get a VAT refund (and if the watch is new and the seller is registered for VAT this ought to be possible) then it kind of evens out what you'd pay upon entry to the UK.

[EJL25]

Just to point out that not only is VAT evasion illegal but HMRC are about the worst people to get on the wrong side of unless you want the forces of darkness unleashed on any tax return you submit in future and to get stopped by customs every time you re-enter the country due to being on their watch list. Isn't worth it and on an expensive watch where the VAT evaded may be in the thousands, well just imagine the treatment you'd get if you stole a couple of thousand pounds from a company and how the Police would look upon that. A bit different to smuggling a bottle of undeclared Whisky through let's put it that way.

That being said if you can get a VAT refund (and if the watch is new and the seller is registered for VAT this ought to be possible) then it kind of evens out what you'd pay upon entry to the UK.

This.

[Doug86]

Just to point out that not only is VAT evasion illegal but HMRC are about the worst people to get on the wrong side of unless you want the forces of darkness unleashed on any tax return you submit in future and to get stopped by customs every time you re-enter the country due to being on their watch list. Isn't worth it and on an expensive watch where the VAT evaded may be in the thousands, well just imagine the treatment you'd get if you stole a couple of thousand pounds from a company and how the Police would look upon that. A bit different to smuggling a bottle of undeclared Whisky through let's put it that way.

That being said if you can get a VAT refund (and if the watch is new and the seller is registered for VAT this ought to be possible) then it kind of evens out what you'd pay upon entry to the UK.

You're completely correct. Hence I'm keen to find out the legit way to do this! The summary I am taking from the advice and links provided is:

Buy the watch
Get refund (which might have a service fee of 5%) at the airport or whilst in the store at the time.
Fly home
After collecting bags upon arrival make sure to go through the red channel, not green and declare the purchase. Pay UK VAT on it.

So I might end up paying 5% higher price overall due to the VAT refund service fee.

[ryanb741]

You're completely correct. Hence I'm keen to find out the legit way to do this! The summary I am taking from the advice and links provided is:

Buy the watch
Get refund (which might have a service fee of 5%) at the airport or whilst in the store at the time.
Fly home
After collecting bags upon arrival make sure to go through the red channel, not green and declare the purchase. Pay UK VAT on it.

So I might end up paying 5% higher price overall due to the VAT refund service fee.

Yep pretty much spot on :)

[Peck]

A friend of mine, many years ago, bought a decent watch (not sure what now) and decided to dodge the VAT by wearing it.

Unfortunately he kept the packaging and receipt in his luggage and got a spot check.

Result, VAT paid and the watch ended up costing more than if he'd bought it in the UK.

That said, it's very unusual to get a spot check these days (or even to see customs officials in the green channel).

M

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I was on the receiving end of a spot check once at Heathrow. I was hand luggage only coming back from California after a very short business trip. I had actually bought an iPad (which I think was under the VAT limit anyway) but definitely got the impression he was looking for much higher value items - he wasn’t interested in the iPad at all.

It was enough to convince me never to even consider trying to dodge a tax like this. Some black marks probably never leave your record… Just take the red channel and cough up

[Kingstepper]

For interest, here’s example of a procedure for buying VAT free in the UK. Buying abroad will be similar, could be slicker if an agent is used: -

https://www.manchesterairport.co.uk/...s/vat-refunds/

[theancientmariner]

For interest, here’s example of a procedure for buying VAT free in the UK. Buying abroad will be similar, could be slicker if an agent is used: -

https://www.manchesterairport.co.uk/...s/vat-refunds/

It seems that Manchester Airport need to update their website. The VAT Retail Export Scheme no longer applies;

https://www.visitlondon.com/travelle...money/tax-free

https://www.gov.uk/government/public...ing-concession

[Kingstepper]

It seems that Manchester Airport need to update their website. The VAT Retail Export Scheme no longer applies;

https://www.visitlondon.com/travelle...money/tax-free

https://www.gov.uk/government/public...ing-concession

Thanks for clarification. Seems we're fortunate 'schemes' still exist abroad.

[stefmcd]

Were we not once able to provide passport etc at a shop and have local vat removed? I remember this happening in the USA many years ago. We then had to pay the UK vat upon return.

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[Normunds]

A friend of mine, many years ago, bought a decent watch (not sure what now) and decided to dodge the VAT by wearing it.

Unfortunately he kept the packaging and receipt in his luggage and got a spot check.

Result, VAT paid and the watch ended up costing more than if he'd bought it in the UK.

That said, it's very unusual to get a spot check these days (or even to see customs officials in the green channel).

M

Sent from my ASUS_X00PD using Tapatalk

This spring a member of Parliament of Latvia went to Switzerland and bought some Rolex watch. Of course she claimed her VAT back in airport. As there were no direct flights between Geneva and Riga she had connection in Warsaw. After arrival she chose to go through green gates, got stopped, paid VAT and fine.

No one knows why she was stopped - did Swiss customs informed Polish colleagues or she was stupid enough to carry Rolex shop bag, who knows. As she is member of populist party, did not had any savings during past 3 years that would allow her to buy 12K watch no one was sorry for her.

[Fender]

I was on the receiving end of a spot check once at Heathrow. I was hand luggage only coming back from California after a very short business trip. I had actually bought an iPad (which I think was under the VAT limit anyway) but definitely got the impression he was looking for much higher value items - he wasn’t interested in the iPad at all.

It was enough to convince me never to even consider trying to dodge a tax like this. Some black marks probably never leave your record… Just take the red channel and cough up

Take the red channel, yes, but also sew several high end watches into the lining of your overcoat. Maybe give them a quick flash as you're leaving the airport.
'better luck next time, boys'

[MartynJC (UK)]

Were we not once able to provide passport etc at a shop and have local vat removed? I remember this happening in the USA many years ago. We then had to pay the UK vat upon return.

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Probably - or last time I went to Calif (many years ago now) there was a dedicated "shop" where you went to reclaim tax paid for high value items - and got your dollars back on the spot - as long as you had your passport and travel tickets.

[theancientmariner]

Were we not once able to provide passport etc at a shop and have local vat removed? I remember this happening in the USA many years ago. We then had to pay the UK vat upon return.

it used to happen in the UK many years ago. I believe that it was a requirement for shops to hold a book for any transactions where the vat was repaid due to the customer being a traveller who was taking the goods back out of the country. It slowly became an outsourced system where a secondary company would do all the paperwork and charge for the privilege and eventually became a system where by the vat had to be claimed back by filling out a form and handing it over at an appropriate airport.

[uptheaddicks]

Just to point out that not only is VAT evasion illegal but HMRC are about the worst people to get on the wrong side of unless you want the forces of darkness unleashed on any tax return you submit in future and to get stopped by customs every time you re-enter the country due to being on their watch list. Isn't worth it and on an expensive watch where the VAT evaded may be in the thousands, well just imagine the treatment you'd get if you stole a couple of thousand pounds from a company and how the Police would look upon that. A bit different to smuggling a bottle of undeclared Whisky through let's put it that way.

That being said if you can get a VAT refund (and if the watch is new and the seller is registered for VAT this ought to be possible) then it kind of evens out what you'd pay upon entry to the UK.

Sound advice being given here!
There are quite a few from the dark side on this very forum.