vat discounts

[shirtguy]

IF I buy a watch overseas do I get the vat discount ?

[tyler1980]

yes you get a VAT refund when exporting it out of the country, and then you declare it and pay duty when importing to your home country. So its not technically tax free, its better described as not paying taxes twice.

However the import duty is less than the VAT so you will still come out ahead in some locations.

[shirtguy]

SAY VAT IS 17%
I get that back, at the airport?
then what happens when I come back into the states?

[tyler1980]

Originally Posted by shirtguy

SAY VAT IS 17%
I get that back, at the airport?
then what happens when I come back into the states?

you won't get the whole 17% back. There are fees so its like 5% less or somewhat close to that. You fill out paperwork and get the paperwork stamped by customs at the airport and then the refund is processed. When you get home you declare at customs and pay fees. Not sure how much that is but im pretty sure its not a ton in the US. You should come out ahead.

[shirtguy]

and you have to declare it at the us, regardless of cost?

[037]

Originally Posted by shirtguy

and you have to declare it at the us, regardless of cost?

Unless you don't want your VAT back and prefer to risk confiscation.

You could ship the box/papers home and wear the watch but you won't get VAT back.

[123Blueface]

After the $800 allowance per person, you pay 3% on the difference.

[beshannon]

Originally Posted by shirtguy

and you have to declare it at the us, regardless of cost?

What items must I declare when entering the United States?
Upon entering the United States you must declare:

- Items you purchased and/or carrying with you upon return to the United States. (Gifts purchased or received)

- Items you inherited.

- Items you bought in duty-free shops, on the ship, or on the plane.

- Repairs or alterations to any items you took abroad and then brought back, even if the repairs/alterations were performed free of charge.

- Items you brought home for someone else.

- Items you intend to sell or use in your business, including business merchandise that you took out of the United States on your trip.

- All monetary instruments such as traveler's checks, cash, gold coins, negotiable checks, money orders, promissory notes, and securities or stocks.

https://help.cbp.gov/app/answers/det...tering-the-u.s.

https://www.cbp.gov/travel/clearing-...ler-entry-form

[DPE]

When does a watch not become an issue at an Airport ? If you have had it for several years as it was bought on a holiday. Say 10 years ago and from say, Spain ?. You then go on holiday to USA now 10 years later. On your return home you are stopped and asked about the watch you are wearing. Where do you stand ?

[zaydans]

UK VAT is 20% and by the time fees and such are deducted the total return is approx 15%.

Total tax to pay in the US side us around 3% as I think some had said already.

[dmash]

Originally Posted by shirtguy

IF I buy a watch overseas do I get the vat discount ?

Honestly, if you're going to Europe, not sure what you're looking at buying that's really going to save you much money. The dollar is no longer super strong, and stock is pretty limited except for DJ and PM. The price you'd get from a US Grey will be better than what a dealer will give you here.....

If you're intent on purchasing though, one other thing I want to mention that a lot of people aren't aware of....if this isn't a new purchase, you're not getting any VAT back. Just making sure, in case you're planning on buying something lightly used. It needs to be new AND purchased from a business. New goods from individuals also won't get any VAT back. Most airports (not every, but most) will inspect your items at the airport on the way back home (when you make your VAT claim) and make sure they're new and verify the receipt.

Originally Posted by 037

Unless you don't want your VAT back and prefer to risk confiscation.

You could ship the box/papers home and wear the watch but you won't get VAT back.

Sorry, but you have absolutely no idea what you're talking about. Would be better to not comment if you are just guessing.

Originally Posted by DPE

When does a watch not become an issue at an Airport ? If you have had it for several years as it was bought on a holiday. Say 10 years ago and from say, Spain ?. You then go on holiday to USA now 10 years later. On your return home you are stopped and asked about the watch you are wearing. Where do you stand ?

This is INCREDIBLY unlikely (we're talking less than 0.1% chance), however if it does happen, and it progresses further than a simple question of if this watch is being brought back, it's going to go one of two ways. 1. If it is obviously used and you have no box/paperwork in your luggage upon inspection, you're going to be free to go, practically without a doubt. 2. If it looks new and/or you're carrying box/paperwork, you're screwed if you cant provide original purchase paperwork. Going to reiterate again though, this is INCREDIBLY unlikely, unless you're flashing gold and strutting around with an emblazoned LV suitcase.

*In no way suggesting you break the law, just stating the facts.

Originally Posted by zaydans

UK VAT is 20% and by the time fees and such are deducted the total return is approx 15%.

Total tax to pay in the US side us around 3% as I think some had said already.

Yup, on a UK purchase and using a VAT refund service provider, this is pretty much correct. One could assume that the 'end price' will be around 10-12% off the original purchase price. However, there are certain stores across Europe, that will handle the refund in store on a credit card purchase. You get the full amount back with these retailers.

[037]

Originally Posted by dmash

Sorry, but you have absolutely no idea what you're talking about. Would be better to not comment if you are just guessing.

= sarcasm. Relax.

Wearing a watch home and shipping the box is attempted quite often to avoid customs, although I don't personally suggest doing so. VAT is unavoidable if purchasing in-country.

[car_wash_guy]

I've posted this in other threads...

I have a good friend that works for Border Patrol. Actually Customs at JFK.

They take great pride in confiscating undeclared items. He told me that they take it almost as a challenge to find stuff. Question people and find liars.

I personally don't agree with it 100% but they are just doing their jobs.

[dmash]

Originally Posted by 037

= sarcasm. Relax.

Wearing a watch home and shipping the box is done quite often to avoid customs. VAT is unavoidable if purchasing in-country.

I understand sarcasm, no worries.

It's just that your claim of no getting VAT back if he doesn't claim it in the US, is blatantly wrong....

[037]

Originally Posted by dmash

I understand sarcasm, no worries.

It's just that your claim of no getting VAT back if he doesn't claim it in the US, is blatantly wrong....

I was referring to reclaiming it at the point of exit. I edited my post above in the time that you quoted me.

To be more clear, the US technically doesn't refund VAT, which is what was being asked. https://help.cbp.gov/app/answers/det...BTSWdLbg%3D%3D Note: "The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding this tax."

[Quailhunter]

I have traveled Internationally in my job often and have never been asked about my watch, a yellow gold DayDate. I’ve bought one watch while in the U.K. and paid duty on it upon my return to the US.

If you want to avoid any reentry issues, go to a Customs office and get a declaration form for the watch. The form proves you owned the watch prior to your trip. If done this for traveling with firearms often. I would guess you need the serial number of the watch.

[ROLEXster]

Originally Posted by Quailhunter

If you want to avoid any reentry issues, go to a Customs office and get a declaration form for the watch. The form proves you owned the watch prior to your trip.

I have done this once before leaving for vacation. Do I need to do this everytime or it is a one time thing and they register it in their data base ?

[Quailhunter]

I keep my declaration form and use it every time I travel. I don’t think it expires. I would not rely on their data base.

[hwelsh]

Originally Posted by shirtguy

IF I buy a watch overseas do I get the vat discount ?

What if you buy just a clasp of a Rolex watch?

[beshannon]

Originally Posted by hwelsh

What if you buy just a clasp of a Rolex watch?

You bought it you declare it, not hard to understand.

[ocwatching]

Originally Posted by hwelsh

What if you buy just a clasp of a Rolex watch?

[tyler1980]

Originally Posted by hwelsh

What if you buy just a clasp of a Rolex watch?

surely it easier to acquire an entire watch rather than smuggling it past customs piece by piece