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Sft33
·Headed to Italy for vacation. What are pros/cons of buying a watch overseas? I’m a US resident.
Buying a watch in Europe
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BLOW UP
·Usually, watches are a bit cheaper in the US and for some reason often significantly cheaper in Japan for the most part .. I guess it depends what you're after
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Donn Chambers
·The only pro is if the currency exchange rate is in your favor AND you can purchase it without VAT applied. Don’t forget the extra fee many credit cards use in foreign transactions. The dollar is only worth .9 euros now, so your exchange rate is not great (I.e., a 5000 euro watch will cost you $5400 and prices are usually higher to start in euros.)
The cons are:
1) getting VAT returned if you don’t buy in a duty free shop. This can be a hassle, depending on country and airport. You need paperwork stamped by seller and customs officials. Some cities will offer a refund at stores in the city, but this a technically a loan against the VAT being approved and they charge a fee. If it isn’t approved, you can be hit with an interest charge. Some kiosks in airports are hard to find or only open for specific hours, or may be in a terminal you aren’t flying out of. In short, you might end up having paid the 20% VAT anyway.
2) you have to declare the item and pay duty when you return to the US. You are going to do that, right? 😉 This takes time and will cost you a little money (make sure you have a personal check or cash, because not all customs desks take cards). Make sure you have at least an extra hour to do this, based on my experience. Cost will be anywhere from 3-5% of the purchase price.
3) Finally, you technically are supposed to file paperwork with your state and pay any sales tax due if they require it. But this varies from state to state.
So, lots of cons, only one pro. If you want to buy a watch overseas, I’d suggest finding something less than $800 (VAT included) which is your personal allowance for importing.
Enjoy the trip
The cons are:
1) getting VAT returned if you don’t buy in a duty free shop. This can be a hassle, depending on country and airport. You need paperwork stamped by seller and customs officials. Some cities will offer a refund at stores in the city, but this a technically a loan against the VAT being approved and they charge a fee. If it isn’t approved, you can be hit with an interest charge. Some kiosks in airports are hard to find or only open for specific hours, or may be in a terminal you aren’t flying out of. In short, you might end up having paid the 20% VAT anyway.
2) you have to declare the item and pay duty when you return to the US. You are going to do that, right? 😉 This takes time and will cost you a little money (make sure you have a personal check or cash, because not all customs desks take cards). Make sure you have at least an extra hour to do this, based on my experience. Cost will be anywhere from 3-5% of the purchase price.
3) Finally, you technically are supposed to file paperwork with your state and pay any sales tax due if they require it. But this varies from state to state.
So, lots of cons, only one pro. If you want to buy a watch overseas, I’d suggest finding something less than $800 (VAT included) which is your personal allowance for importing.
Enjoy the trip
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gbesq
·More cons than pros as Donn Chambers notes. Buy in the U.S. unless you happen upon a watch that you really must have and can’t find anywhere else.
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twizit
·1) getting VAT returned if you don’t buy in a duty free shop. This can be a hassle, depending on country and airport. You need paperwork stamped by seller and customs officials. Some cities will offer a refund at stores in the city, but this a technically a loan against the VAT being approved and they charge a fee. If it isn’t approved, you can be hit with an interest charge. Some kiosks in airports are hard to find or only open for specific hours, or may be in a terminal you aren’t flying out of. In short, you might end up having paid the 20% VAT anyway.
This bit ^^^. Recent experience of buying (jewellery) in Vienna. No issue in getting papers ready from retailer, and staff at airport kiosk very helpful, but had to wait quite a while for a manager to turn up to approve the amount as it was reasonable. Thankfully we had enough time, but could have been an issue if out of hours. Also, once papers were stamped there was an option to drop papers off then wait for 30 days for refund to come through. Didn't like that option so went with the get a refund in cash now from the money exchange next door. Obviously they want their cut and offer a pretty poor exchange rate - so I took a hit on this but far rather have cash in hand than wait for a refund that may or may not appear in my bank account.
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GrussGott
·Headed to Italy for vacation. What are pros/cons of buying a watch overseas? I’m a US resident.
Cons: some bureaucracy as others have noted
As an FYI, this past December I bought an Omega in Switzerland and here are the things to be aware of:
(1.) Get the VAT refund documents filled out at the time of purchase from the retailer: you can't do it later
(2.) Figure out where (rail, road, or airport) you're leaving the EU and make sure your purchase country is the EU! E.g., Switzerland isn't. Then figure out EXACTLY where the customs office is at that point of departure, call them / ensure they'll be open when you're due to arrive & have your VAT docs, receipt, & passport ready to get your VAT refunded. The other way you can do this is simply mail it in immediately via a 3rd party like Global Blue but they'll charge you a fee.
(3.) Declare your item when you arrive in the US. NOTE: customs MAY OR MAY NOT charge you a duty. This past December I declared a lot of stuff (5 figs) and was charged $0, though YMMV.
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Evitzee
·Although you are supposed to pay US sales tax when you return home (varies by state and would be in the 8% range), I doubt any one does this. I've never heard of anyone hunting down the appropriate form on a state's website and actually paying the sales tax on personally imported items.
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gatorcpa
··ΩF InvestiGatorI've never heard of anyone hunting down the appropriate form on a state's website and actually paying the sales tax on personally imported items.
Just be aware that U.S. Customs communicates with state and local use tax authorities on larger purchases. While states generally do not have the manpower to police their borders for use tax collection purposes, they will, for large customs declarations, assess use tax directly to its citizens.
gatorcpa
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drster
·I have purchased in Europe and there was no benefit. I had to get my VAT credit in the airport which took extra time. The price was no bargain. It would have been cheaper buying in the US.
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Evitzee
·That rarely happens. Most states’ personal income tax returns have a line item to declare use tax (not sales tax, there are differences) for items imported into a state. Think of use tax as a state-level customs.
Just be aware that U.S. Customs communicates with state and local use tax authorities on larger purchases. While states generally do not have the manpower to police their borders for use tax collection purposes, they will, for large customs declarations, assess use tax directly to its citizens.
gatorcpa
Right now buying in Europe is basically a wash because of the exchange rate and better control of the distribution system. This wasn't so in the past. In the mid-eighties the exchange rate was CHF2.5 = $1, and a lot of the Swiss brands were generally unavailable in the US, or very thinly available with poor selection. Windows in Switzerland were full of Patek Philippe, Audemars Piguet, Vacheron Constantin, Breguet, Blancpain and many other brands that weren't easily found in the US outside of the major cities like New York or Chicago. And the net prices were about half of US prices because of the very strong dollar. That came to an end in late 1985 with The Plaza Accord where the major economies of the world worked to lower the strength of the dollar by intervening in the currency markets. But the Swiss Franc was still weak for a number of years afterward still making the buying of a watch in Zurich or Geneva a money saving option. The good old days. Now you can't even see a PP, AP, Rolex for sale in Switzerland, they won't even let you past the velvet ropes unless you have made a reservation or are a special client. Not very fun anymore. Still good for looking for the wide variety, not so much for buying.
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Alfista88
·On the con side, a reminder to factor in that a vendor's VAT refund amount doesn't always equal the country's VAT %.
I was in Malta last week, and almost purchased a Sea Dweller 43. While Malta's VAT rate is 18%, the Rolex AD was offering only a 11% VAT refund through its arrangement with the VAT refund vendor it uses. I ended up passing, since price of 12,727 (14,300 x 89%) euro ends up being around the same as the US retail price, and I didn't want the stress of carrying around an extra watch through the remainder of a vacation abroad.
This will vary by store, so it's best to call ahead and clarify what the exact VAT refund % will be. I've only purchased 1 watch in the Europe in the past (a Lange in Romania), and the spread between VAT % and VAT refund % was much smaller on that purchase than what I encountered in Malta.
I was in Malta last week, and almost purchased a Sea Dweller 43. While Malta's VAT rate is 18%, the Rolex AD was offering only a 11% VAT refund through its arrangement with the VAT refund vendor it uses. I ended up passing, since price of 12,727 (14,300 x 89%) euro ends up being around the same as the US retail price, and I didn't want the stress of carrying around an extra watch through the remainder of a vacation abroad.
This will vary by store, so it's best to call ahead and clarify what the exact VAT refund % will be. I've only purchased 1 watch in the Europe in the past (a Lange in Romania), and the spread between VAT % and VAT refund % was much smaller on that purchase than what I encountered in Malta.
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GrussGott
·I was in Malta last week, and almost purchased a Sea Dweller 43. While Malta's VAT rate is 18%, the Rolex AD was offering only a 11% VAT refund through its arrangement with the VAT refund vendor it uses. .
I'm no Malta legal expert but I don't think they can force you to use a vendor ... That said what are we tourists going to do about it?
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Duquephart
·The only pro is if the currency exchange rate is in your favor AND you can purchase it without VAT applied. Don’t forget the extra fee many credit cards use in foreign transactions. The dollar is only worth .9 euros now, so your exchange rate is not great (I.e., a 5000 euro watch will cost you $5400 and prices are usually higher to start in euros.)
The cons are:
1) getting VAT returned if you don’t buy in a duty free shop. This can be a hassle, depending on country and airport. You need paperwork stamped by seller and customs officials. Some cities will offer a refund at stores in the city, but this a technically a loan against the VAT being approved and they charge a fee. If it isn’t approved, you can be hit with an interest charge. Some kiosks in airports are hard to find or only open for specific hours, or may be in a terminal you aren’t flying out of. In short, you might end up having paid the 20% VAT anyway.
2) you have to declare the item and pay duty when you return to the US. You are going to do that, right? 😉 This takes time and will cost you a little money (make sure you have a personal check or cash, because not all customs desks take cards). Make sure you have at least an extra hour to do this, based on my experience. Cost will be anywhere from 3-5% of the purchase price.
3) Finally, you technically are supposed to file paperwork with your state and pay any sales tax due if they require it. But this varies from state to state.
So, lots of cons, only one pro. If you want to buy a watch overseas, I’d suggest finding something less than $800 (VAT included) which is your personal allowance for importing.
Enjoy the trip
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GrussGott
·They don't ask for declarations anymore - at least not on the last two times I returned from Europe. Last time you didn't even sign a form.
They don't do the forms, but customs most definitely **should** be asking you if you have anything to declare ... and if they didn't that's not a free pass! And if you paid by credit card, well, the IRS can certainly find that if they ever look.
For my risk profile, just not worth it to lie (via omission or commission)
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Duquephart
·Last time (Boston) the guy just asked where we'd been and said welcome back. That's all.
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Donn Chambers
·They don't ask for declarations anymore - at least not on the last two times I returned from Europe. Last time you didn't even sign a form.
No forms, but I was asked if I had anything over $800 to declare when I travelled back from Germany last year.
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GrussGott
·Last time (Boston) the guy just asked where we'd been and said welcome back. That's all.
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STANDY
··schizophrenic pizza orderer and watch collectorBought stuff in Greece on holidays (Art work not a watch)
Was happy to leave the VAT and not claim at the airport even though I had filled out the paperwork at the store.
Think they still need a help with tax, as the amount of times cash was asked for by businesses I don’t think they learnt their lesson 🤦
Was happy to leave the VAT and not claim at the airport even though I had filled out the paperwork at the store.
Think they still need a help with tax, as the amount of times cash was asked for by businesses I don’t think they learnt their lesson 🤦
