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Old 13 September 2015, 04:28 AM   #1
WS9D
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How does VAT work?

Sorry for the somewhat question, but I have no idea how this works and am too busy with my kid to google, so maybe someone can enlighten me.

My dad is in England on a trip. He's looking to add a 116719BLRO to his own collection to commemorate his trip. He says prices are a bit high there. How does this whole thing tax rebate thing work? Or should he look at at duty free store.

Thanks for your input.
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Old 13 September 2015, 04:30 AM   #2
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In short he will be better buying in the USA using the TRF trusted sellers.
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Old 13 September 2015, 04:36 AM   #3
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In short he will be better buying in the USA using the TRF trusted sellers.
lol thats what I told him, but he wants to get it over seas for the memories.
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Old 13 September 2015, 04:55 AM   #4
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lol thats what I told him, but he wants to get it over seas for the memories.
I closed on a BNIB 16610 from a TS on the site while I was on my dream trip to Alaska. I was sitting in the parking lot of the Fred Meyer off of Northern Lights Blvd and Seward Hwy when I told him I'll buy it and confirmed he'd hold it until I got back down to Houston to wire him the money. I also remember walking in and telling my wife "I finally bought my Rolex" and went and grabbed a 12-pack of beer to celebrate. Memories will last no matter where it comes from.
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Old 13 September 2015, 04:38 AM   #5
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Old 13 September 2015, 04:44 AM   #6
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All he has to do is prove he is not a UK citizen, or that he is leaving the UK for longer than 1 year and he can reclaim his VAT back on leaving the UK (i think)

The jewler he buys from will advice him the situation as far as i am aware
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Old 13 September 2015, 04:51 AM   #7
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Old 13 September 2015, 04:54 AM   #8
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Is that about right for the price?
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Old 13 September 2015, 06:28 AM   #9
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Originally Posted by Ks6pd View Post
Sorry for the somewhat question, but I have no idea how this works and am too busy with my kid to google, so maybe someone can enlighten me.

My dad is in England on a trip. He's looking to add a 116719BLRO to his own collection to commemorate his trip. He says prices are a bit high there. How does this whole thing tax rebate thing work? Or should he look at at duty free store.

Thanks for your input.
These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer..

When you buy in a country with VAT (Value Added Tax) the Dealer should give you the paperwork to receive a refund. You must go to the Airport when you are leaving the country to get that refund usually (see last step).

Here is a step by step pasted from this site;
http://ec.europa.eu/taxation_customs...d_index_en.htm


. When you are in the shop, ask the shop assistant in advance whether they provide this service.
. Ask the shop assistant what threshold applies to the purchase in order to be eligible for a refund.
. At the check-out, the shop assistant will ask you to provide proof that you are a visitor to the EU. You will need to show your passport or other identity document proving your residence outside the EU.
. The shop assistant will ask you to fill in a form with the necessary details. . You may be asked to show your ticket as proof you are leaving the EU within the required time. The shop assistant will fill in the shop’s part of the form.
. Make sure you understand exactly what you need to do and how you receive the refund. In some cases, the shop itself will refund you. In other cases, the shop will use a third party to organise the refunds on its behalf.
. Make sure you understand whether the shop takes an administrative fee for this service (which will be later deducted from the refunded amount) and if so what is the fee.
. You will receive an invoice for the goods. You must show the invoice, the refund form, the goods and any other necessary documents to the customs officers of the last EU country you leave. The customs officers must stamp the form as proof of export. Without the stamp, you will not obtain the refund.
. You must then follow the steps explained at your refund document or by the shop assistant. You can claim your VAT refund in bigger airports immediately, otherwise you will have to send the refund form to the address given in the shop.

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Old 13 September 2015, 08:21 AM   #10
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These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer..


So true It's like you ask a question and people answer something else

I once made contact with a 'trusted seller' and actually found him very rude so I didn't buy.
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Old 13 September 2015, 11:48 AM   #11
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These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer.. :bangheaed:
True but this is also some useful sarcasm. If you are going to Europe and plan on making expensive purchases you should figure out the VAT situation prior to departure. Trying to figure it out in transit can be overwhelming. The traveler (his dad) needs to figure out the logistics of the refund such as getting to airport extra early, is the VAT office open that early, flight changes, paperwork, etc.

Maybe trusted seller is better.
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Old 13 September 2015, 02:05 PM   #12
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These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer..
After reading this my brain went straight to the obligatory "buy both" post that pops up in just about every "which one should I get" thread
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Old 13 September 2015, 02:50 PM   #13
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As a non-resident, I've claimed my VAT back several times and it's a simple process.

1. Go to AD and agree to purchase watch.
2. Before handing over payment, inform AD that you're a non-resident/tourist and hand over passport.
3. Hand over credit card/cash.
4. AD will hand over shiny new watch, purchase receipt and VAT receipt. A good AD will fill in most of VAT receipt for you.
5. Run away giggling and enjoy rest of trip in UK.
6. Go to airport, leaving an extra half an hour up your sleeve on top of what you normally allow.
7. Have watch and VAT receipt available for inspection.
8. Once checked in and through security, proceed to VAT refunds. Stand in queue for what could be a while (hence having extra half hour up sleeve).
9. Present watch and documents to UK Customs officer.
10. For refund, claim cash not refund to card. I've had a couple of small payments not refunded to my card so wouldn't chance it on a large purchase.
11. Run away giggling with VAT refund.
12. Board plane wearing new watch and smug grin

It could be cheaper to buy it at the airport as the Rolex Boutique is completely VAT free. If purchasing outside, the refund given at the airport is only 13.8% because they keep 3% back as an admin fee. The only issue there though is that they might not have the watch you want in stock. If you phone ahead, they will not hold it for you. Also, they don't like to discount as they're already tax free.

Before anyone pipes up the UK VAT is 20%, I know that. When you do the maths backwards and take the VAT off the retail price, it's about 16.3%. The refund at the airport is actually 13.8% as the government like their little cut, which they call an 'Admin Fee'. That's why expats and tourists never get the full VAT back, hence my refund will be £1,138.50 and not the £1,370 odd that is the true.

Best bet is to buy outside, try negotiate a discount and then claim VAT back as above. If your dad has no luck in getting a discount, I can make a couple of calls to my two ADs at home. If they have the watch in stock, your dad will almost certainly get a discount at one and possibly the other. That will mean a trip to Cardiff though, which is about two and a half hours on the train from London but the savings will pay for the train tickets many times over. PM me if you want me to make a couple of calls
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Old 13 September 2015, 05:11 PM   #14
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Quote:
Originally Posted by Tools View Post
These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer..

When you buy in a country with VAT (Value Added Tax) the Dealer should give you the paperwork to receive a refund. You must go to the Airport when you are leaving the country to get that refund usually (see last step).

Here is a step by step pasted from this site;
http://ec.europa.eu/taxation_customs...d_index_en.htm


. When you are in the shop, ask the shop assistant in advance whether they provide this service.
. Ask the shop assistant what threshold applies to the purchase in order to be eligible for a refund.
. At the check-out, the shop assistant will ask you to provide proof that you are a visitor to the EU. You will need to show your passport or other identity document proving your residence outside the EU.
. The shop assistant will ask you to fill in a form with the necessary details. . You may be asked to show your ticket as proof you are leaving the EU within the required time. The shop assistant will fill in the shop’s part of the form.
. Make sure you understand exactly what you need to do and how you receive the refund. In some cases, the shop itself will refund you. In other cases, the shop will use a third party to organise the refunds on its behalf.
. Make sure you understand whether the shop takes an administrative fee for this service (which will be later deducted from the refunded amount) and if so what is the fee.
. You will receive an invoice for the goods. You must show the invoice, the refund form, the goods and any other necessary documents to the customs officers of the last EU country you leave. The customs officers must stamp the form as proof of export. Without the stamp, you will not obtain the refund.
. You must then follow the steps explained at your refund document or by the shop assistant. You can claim your VAT refund in bigger airports immediately, otherwise you will have to send the refund form to the address given in the shop.

100% accurate!

I live in the Middle East and frequently travel to the UK with my wife to visit her family and shop (cheaper in the UK than in the ME). You can expect to get about 12.5% of the price you paid for the watch back as a VAT refund - the rest of your refund will be eaten up by "processing fees" (unfortunately).

Tell your Dad to hit Old Bond Street (near Hyde Park and the Ritz Carlton just off Park Lane)....good watch shopping there but few discounts to be had. I know a few owners in Burlington Arcade and a world renowned seller who may be able to help - PM me for details if you wish.

Happy shopping!
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Old 13 September 2015, 05:21 PM   #15
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These "buy from a trusted seller" comments aren't very helpful, are they ? I don't understand why so many pipe up with that same old line and don't bother to actually give you a solid, and useful, answer..
+1 ( I'm getting allergic to trusted sellers fans )

Also good explanation from Ruud Van Driver (I'll just add that giggling is optional)
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Old 13 September 2015, 10:02 AM   #16
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I'm not entirely familiar with the UK prices, but throughout Europe with VAT return you can save 10-20% to these "trusted seller" prices here, all bought from an official AD, with the full water bottle Rolex buying experience.

The easiest way is to find a retailer who will process the VAT return using customs forms. Basically - you get a customs stamp at the EU border to the sales invoice, which you then send to the seller. They will then refund the VAT.
Some places can do this electronically(so no need to send stamped invoices back), not 100% sure if this is possible in the UK.

The other way is to use Global Blue. This way, the shop gives you all the forms and seals the purchased items. You then show the sealed bag and the Global Blue paperwork at the airport, and receive the VAT back, less their commission (often 4-6% so quite a substantial amount on an expensive piece).

The price difference is so big, that it is almost without exceptions cheaper to buy a ticket to Europe to buy a Rolex, than to buy one from the sellers here. (DJ/DJ2 1,2k savings, sports models 2k+ savings).
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Old 13 September 2015, 10:24 AM   #17
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Watchfinder in UK have a 2014 one for sale at £17k and a brand new one for £20k
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Old 13 September 2015, 11:21 AM   #18
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Watchfinder in UK have a 2014 one for sale at £17k and a brand new one for £20k
That means that with full VAT return the brand new one is cheaper.
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Old 13 September 2015, 02:53 PM   #19
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That means that with full VAT return the brand new one is cheaper.
Watchfinder can't provide VAT receipts as the watches are second hand. Even if they're unworn, 'BNIB', they're still second hand. I was mildly interested in a piece they had and the non VAT refund broke the deal before I put the phone down.
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Old 13 September 2015, 09:04 PM   #20
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Thanks for the answers to the original question.
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Old 14 September 2015, 01:12 AM   #21
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Good luck in the hunt, and I'm a bit late to the thread, but yes it works as mentioned above. It's quite simple really, just remember your dad will pay the full taxed price upon purchase, he need to claim the VAT. Sometimes VAT is only given back if the bag is still sealed an unused in the country where it was purchased. For example here in Finland the bag is sealed at the AD with a special tape that can not be placed back.
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Old 14 September 2015, 05:37 AM   #22
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Good luck in the hunt, and I'm a bit late to the thread, but yes it works as mentioned above. It's quite simple really, just remember your dad will pay the full taxed price upon purchase, he need to claim the VAT. Sometimes VAT is only given back if the bag is still sealed an unused in the country where it was purchased. For example here in Finland the bag is sealed at the AD with a special tape that can not be placed back.
So, if I were to go to Finland and purchase a watch, say my first day there, I would have to leave it in the sealed bag for the entire time I was there? I could only open it after boarding the plane?
Just trying to figure this all out, not that I plan to be in the EU in the near future, much to my disappointment.
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Old 14 September 2015, 07:47 AM   #23
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So, if I were to go to Finland and purchase a watch, say my first day there, I would have to leave it in the sealed bag for the entire time I was there? I could only open it after boarding the plane?
Just trying to figure this all out, not that I plan to be in the EU in the near future, much to my disappointment.
Basically yes, you couldn't use the watch in Finland. As basically that would be a reason for value added tax...

I've seen this, however I can't swear this is still the practice. A few years ago since I saw this. I don't think you would get too much of a hassle even if the bag was opened though, if you're a smooth talker.
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Old 14 September 2015, 11:20 AM   #24
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Basically yes, you couldn't use the watch in Finland. As basically that would be a reason for value added tax...

I've seen this, however I can't swear this is still the practice. A few years ago since I saw this. I don't think you would get too much of a hassle even if the bag was opened though, if you're a smooth talker.
Global Blue cares about sealed bags, they 100% will not refund if it is open. The customs desk couldn't care less.
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Old 14 September 2015, 05:19 PM   #25
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Global Blue cares about sealed bags, they 100% will not refund if it is open. The customs desk couldn't care less.


Good info. Yes you wouldn't be even meeting customs on the way out.
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Old 14 September 2015, 02:38 PM   #26
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So, if I were to go to Finland and purchase a watch, say my first day there, I would have to leave it in the sealed bag for the entire time I was there? I could only open it after boarding the plane?
Just trying to figure this all out, not that I plan to be in the EU in the near future, much to my disappointment.
Must be a unique situation in Finland. I bought my BLNR in the UK, wore it for a week and then brought it back to Singapore. I didn't wear it out of the country, it was in it's green box with papers etc. and I wore my Daytona. I still received over £700 back in VAT, nil desperandum.

I can understand the logic of keeping it sealed but on the other hand, people buy cars and export them by driving them out of the country.
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Old 14 September 2015, 04:17 PM   #27
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Must be a unique situation in Finland. I bought my BLNR in the UK, wore it for a week and then brought it back to Singapore. I didn't wear it out of the country, it was in it's green box with papers etc. and I wore my Daytona. I still received over £700 back in VAT, nil desperandum.

I can understand the logic of keeping it sealed but on the other hand, people buy cars and export them by driving them out of the country.
Technically it is similar everywhere in the EU. The product must be exported unused in its original sales packaging. Some countries care more about this than rest. In Finland it's only Global Blue that cares, the officials don't.
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Old 14 September 2015, 06:02 AM   #28
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Good luck in the hunt, and I'm a bit late to the thread, but yes it works as mentioned above. It's quite simple really, just remember your dad will pay the full taxed price upon purchase, he need to claim the VAT. Sometimes VAT is only given back if the bag is still sealed an unused in the country where it was purchased. For example here in Finland the bag is sealed at the AD with a special tape that can not be placed back.

This is timely. I will actually be in Finland in a couple weeks. So If I go to the AP dealer in Helsinki, can they sell with the bag and then get the vat back at the airport on the way out?
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Old 14 September 2015, 07:43 AM   #29
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This is timely. I will actually be in Finland in a couple weeks. So If I go to the AP dealer in Helsinki, can they sell with the bag and then get the vat back at the airport on the way out?
Let me know when you're here.
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Old 14 September 2015, 06:51 AM   #30
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I will also add that some AD's may be able to give a VAT instant refund so you don't have to bother with the VAT refund line, which is a pain.

Panerai and Cartier have done this for me. The minute my credit card is charged the full amount, including VAT, a separate transaction, in the form of a credit immediately appears on my credit card.


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