Rolex underpriced in Euro(pe)?

[TakeYourTime]

I'm on a business trip in Munich and just realized that the Seadweller "only" costs 10350 Euro incl 19%VAT.

€10350 less 19% = €9,193.5 Seadweller net * 1.12 (current exchange rate) = $10,296.72

It's just one example but its "cheap" compared to our US prices. What do you think?

I went to Wempe. Nice staff, nothing interesting in stock.
Really a beautiful city btw!

EDIT: I did a mistake, it's only 8383 Euro net or $9389 net!

[Rocket launcher]

You figures are wrong
19 percent off would be €8383
So cheaper still

[TakeYourTime]

Thank you for correcting me (I had too many German beers today).

8383 * 1.12 = $9,389.52 (net) for a Seadweller 43mm

Dang!

[garbanzo]

Well, for us across the pond there is no way of getting around paying the VAT, if that makes you feel any better
For the tax evasion minded, the high European VAT rates obviously offer an incentive (for out-of-EU travellers) as seen in many threads. Obiously the demand/supply situation is what it is all over the world.

[zjd168]

obviously and that is one of the reasons why SS are a lot harder to get from europe, especially UK

[Wmesallem]

Tried at every rolex dealer in Frankfurt...No dice to find an Stainless model sports watch. Have been checking every day but no luck at all. Did find some PM Daytonas, but no luck on a discount. My AD in cali told me he'd give me a discount on PM daytonas in a heartbeat.

[georgekart]

Originally Posted by TakeYourTime

Thank you for correcting me (I had too many German beers today).

8383 * 1.12 = $9,389.52 (net) for a Seadweller 43mm

Dang!

Originally Posted by Rocket launcher

You figures are wrong
19 percent off would be €8383
So cheaper still

Technically not. Because EU prices already include tax. So subtracting tax rate would be incorrect. To find out the true price with tax rate of 19% you have to divide the price by 1.19 as the price already includes the tax (0.19), hence the rest (1) is what it was before tax or what you'll pay if you get tax back. So for example if price is €10.3k, without tax it'd be €10300/1.19=€8655. Then in USD €8655=$8655*1.12=$9694.

As to prices being low, we here in EU can't get the tax back, so we still pay more than you Americans due to higher tax rates. I bet Rolex (and other companies) have it figured out and if it was selling for more/same as US without tax a lot of people (or at least a sizable amount) would just not be buying them here.

[torifile]

To answer the question, yes Rolexes purchased in Europe by us out of Europe folks, especially US residents, are cheaper. The trick is finding one. I saved over $1300 on my 214270 when you factor in sales tax. And, yes, I did declare the purchase at customs. They just opted not to charge me for it.

[Kingfish01]

When you get your VAT money back at the airport, it comes out to 13-15% or so, depending how you get it back

[Rrpdc]

Originally Posted by Kingfish01

When you get your VAT money back at the airport, it comes out to 13-15% or so, depending how you get it back

+1. Global refund has a calculator country specific. Op-you def will not be getting total full vat back.

[torifile]

Originally Posted by Rrpdc

+1. Global refund has a calculator country specific. Op-you def will not be getting total full vat back.

It depends on where you get the watch. I got every penny of VAT back on my watch.

[teqp]

But the problem is actually finding a model you want. I was in Munich in March and went to Wempe and Bucherer and both had no SS sports models in stock. So while it can be cheaper in EU, finding the watch you want can be challenging. It was fun to look around but in the end I just went to the LV store down the street and picked up a new wallet for me instead.

OP enjoy Munich!

[WatchLurv]

Global Blue nips you for 3% and your credit card exchange rate nips you for another 2% unless they take Amex which then comes to ~0.5-1%, but they prefer Visa and Master as they don't get stiffed with a 3-4% processing fee vs 2%.

Factor that in and it should still be cheaper.

And how in the world did you find an SD43 on display?!

[zjd168]

Originally Posted by georgekart

Technically not. Because EU prices already include tax. So subtracting tax rate would be incorrect. To find out the true price with tax rate of 19% you have to divide the price by 1.19 as the price already includes the tax (0.19), hence the rest (1) is what it was before tax or what you'll pay if you get tax back. So for example if price is €10.3k, without tax it'd be €10300/1.19=€8655. Then in USD €8655=$8655*1.12=$9694.

As to prices being low, we here in EU can't get the tax back, so we still pay more than you Americans due to higher tax rates. I bet Rolex (and other companies) have it figured out and if it was selling for more/same as US without tax a lot of people (or at least a sizable amount) would just not be buying them here.

US customers pay sales tax on top of the MSRP, except in a few states

[torifile]

Originally Posted by WatchLurv

Global Blue nips you for 3% and your credit card exchange rate nips you for another 2% unless they take Amex which then comes to ~0.5-1%, but they prefer Visa and Master as they don't get stiffed with a 3-4% processing fee vs 2%.

Factor that in and it should still be cheaper.

And how in the world did you find an SD43 on display?!

You state this like it’s universally true. It’s not. I got all my VAT back because my jeweler processed the refund themselves and my Chase visa had a market conversion rate. At the time we were in Paris, it was $1.12 to 1€ and that’s what I was charged by my card.

If you’re getting 2% added, you need a better card.

[rom33]

Hi, say I buy a watch in Austria and fly to Zurich. Can I obtain the VAT refund upon leaving Vienna which is in the EU?
Thanks

[rominvicta]

Originally Posted by rom33

Hi, say I buy a watch in Austria and fly to Zurich. Can I obtain the VAT refund upon leaving Vienna which is in the EU?
Thanks

Yes, you should be able to. Switzerland is not an EU member country. But be careful with Swiss customs, upon import you have to pay Swiss VAT. And they are very strict, sometimes even overly. If not declared penalties apply.

[WatchLurv]

Originally Posted by torifile

You state this like it’s universally true. It’s not. I got all my VAT back because my jeweler processed the refund themselves and my Chase visa had a market conversion rate. At the time we were in Paris, it was $1.12 to 1€ and that’s what I was charged by my card.

If you’re getting 2% added, you need a better card.

Some shops allow for you to get full VAT refund if you get the stamp on the exit (out of EU) and send it back by mail. 95%+ of all shops will go the Global Blue way.

It's normal bank exchange rate to do 2%. We get miles in return so it compensates for that, however it's part of the calculation since you can't sell off the miles without incurring some additional cost.

Originally Posted by rominvicta

Yes, you should be able to. Switzerland is not an EU member country. But be careful with Swiss customs, upon import you have to pay Swiss VAT. And they are very strict, sometimes even overly. If not declared penalties apply.

Not if you're in transit. Flown through Zurich many times.

[rominvicta]

Yeap, exactly, VAT does not apply if you are not entering Switzerland.
Worth reading it.

https://www.fratellowatches.com/bewa...019-attendees/

[georgekart]

Originally Posted by zjd168

US customers pay sales tax on top of the MSRP, except in a few states

Hence as I stated, higher tax rates. Not saying you have no taxes but IIRC on average it's less than 10%. Here lowest tax rate in EU is 17% and most places fall into 19-23% range.

[Batmannr1]

Originally Posted by zjd168

US customers pay sales tax on top of the MSRP, except in a few states

19 % VAT in Germany is higher then sales taxes in the US. So if you are a non-EU citizen and you buy a new Rolex in the EU, you will get a very nice tax refund when leaving the EU. The ADs in my city promote the use of Global Blue to do the paperwork for the refund, it will cost you about 3%.

[zjd168]

Originally Posted by georgekart

Hence as I stated, higher tax rates. Not saying you have no taxes but IIRC on average it's less than 10%. Here lowest tax rate in EU is 17% and most places fall into 19-23% range.

Using the example of the OP, local customers paid 10300 euro which is 11530$, the US MSRP is 11350$ plus sales tax of 5-10%, depending on the state. So this is not true "we here in EU can't get the tax back, so we still pay more than you Americans due to higher tax rates. "

[zjd168]

Originally Posted by Batmannr1

19 % VAT in Germany is higher then sales taxes in the US. So if you are a non-EU citizen and you buy a new Rolex in the EU, you will get a very nice tax refund when leaving the EU. The ADs in my city promote the use of Global Blue to do the paperwork for the refund, it will cost you about 3%.

Isn't the price of 10300 euro already included the VAT tax? If that is the case it is still cheaper than US MSRP plus sales tax, with the current exchange rate.

Of course the deal will be a lot sweeter for non-Eu purchaser who can get tax refund. Hence my comment in the earlier thread.

[jsausley]

I'm pretty sure I calculated that you could get an OP39 for a hair under $5,000 at one point when the exchange rate was favorable. Talk about value proposition.

[georgekart]

Originally Posted by zjd168

Using the example of the OP, local customers paid 10300 euro which is 11530$, the US MSRP is 11350$ plus sales tax of 5-10%, depending on the state. So this is not true "we here in EU can't get the tax back, so we still pay more than you Americans due to higher tax rates. "

I guess the exchange rate changed significantly, last time I checked local price was same as US+average local sales tax(which I assumed was 8%). I guess now that's the case that MSRP in Europe is basically US MSRP but already includes tax. Which means we might soon see a price raise in Euro using countries.

[enjoythemusic]

Am in Munich shopping and will be getting something nice at a very good discount of course. Easy to buy DD40 at ~30% off. Everything is at least 15% discount or more. Gentlemen, you know you deserve a European vacation.

Think of it this way, but a Rolex and get a free vacay.

DO IT!

[TakeYourTime]

The 10350 Euro are already including 19% VAT! Therefore I was so shocked and started this thread.

I truly think that Rolex watches are seriously underpriced in the EU.

You're right Steven. Next time I will buy a PM in Germany, get a nice discount AND get my VAT back after leaving the EU. Maybe the PM price is almost equivalent to a SS price in the US...

[Ungucpho]

you can do all sorts of complicated math to see that it's more competitively priced in europe

when i went, the price in italy for the SubC is 7900€. Price in the US is 8550. €8550/€7900 = 1.082 conversion factor. If exchange rates are higher than 1.08, you pay a small conversion premium, if exchange rates are below 1.08, exchange rates will benefit you

With current conversion rates @ 1.12, €7900 = $8,872, price advantage for US, however taxes are not factored into the US price, but taxes are for the Euro Price. Factor in the VAT refund, approx 15% VAT refund in Italy, equaling ~1185€, the effective price is ~6715€ * 1.12=$7520 for a SubC date

Before the craze, i picked up my sub for 7200€, VAT refund of 1080€, effective price of 6180€*1.15 USD/€ = ~$7,100 for my SubC date, compared to California US MSRP + Tax = 9320. I saved about 2,200, or 24% compared to US MSRP + tax just by purchasing in an AD in Europe