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Buying at Airport

gatorcpa
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guppydriver guppydriver
As an airplane pilot , can I buy a watch, have my layover in...say Vancouver... and then legally bring it back the next night through US customs?
From a US Customs perspective, you can.

For US residents of a state that has sales/use tax, use tax is technically due on any purchase brought into the state on which sales tax was not paid. California is a use tax state. You do not pay use tax at an airport, as that is considered federal property.

This is very rarely enforced, but it is still owed.
gatorcpa
 
Croc
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If travelling within the EU, as stated by others, the prices at Heathrow, etc. include VAT, but are normally discounted, excluding Rolex (not that they have any in any case). (https://uk.worlddutyfree.com/ukm_en/duty-free-shopping) So no VAT or duty is due when bring the watch back home. Likewise if you buy from a shop within the EU. This should be the case until the end of the transition period, thereafter depends on the deal that is finally agreed with the EU. The shops are normally helpful and in my experience have been happy to give prices over the phone and let you reserve or order in a watch. If travelling outside the EU prices do not include VAT, which is due if the watch is brought back. If buying from outside the EU also remember to factor in duty as well as VAT eg (from memory so please check and remember depends on the country) bringing a watch purchased in the USA back to the UK will result in 5% duty in addition to VAT, whereas from Switzerland no duty is due only VAT
 
Evitzee
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gatorcpa gatorcpa
From a US Customs perspective, you can.

For US residents of a state that has sales/use tax, use tax is technically due on any purchase brought into the state on which sales tax was not paid. California is a use tax state. You do not pay use tax at an airport, as that is considered federal property.

This is very rarely enforced, but it is still owed.
gatorcpa
I lived in NJ in the early 90's and bought a few watches from Tourneau on Madison Avenue, I had struck up a friendship with one of the managers and he gave me reasonable discounts for the times. He would send the watches to me in NJ, with no NY state sales tax paid. Then about two years later I get a letter from a NJ tax department in Trenton informing me they have a reciprocal agreement with NY state to share high dollar sales transactions and enclosed was a tax invoice for the 6% NJ sales tax on three watches I had bought over about a six month time. The next time I visited Tourneau I asked about this and he confirmed that arrangement. They never tell the customer for fear of losing a sale, so I never bought another watch from them. This was almost 30 years ago when much of this would have had to be done manually with little electronic aids, you can imagine how much easier it is today with all transactions done electronically.
 
Thegreatroberto
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So, as I write, I'm at Gatwick North on my way to a non EU destination (Iceland). WoS, are showing "tax free to non eu destinations only " prices on Tudor. All other brands show a discounted price to all destinations. The explanation being that Tudor don't discount, but are prepared to do duty free. Albeit if you are travelling outside the EU. The sales person said given Tudor is tax free, you should declare it on your return.
Edited:
 
Graemega
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Donn Chambers Donn Chambers
Your semantic differentiation makes no sense - if “airport prices” are lower than high street prices by exactly the amount of VAT (20%), then how are they NOT VAT free?

Also, it’s NOT 20% off the price after VAT has been added. Instead, it is the base price without VAT added. For example, say the base price is 5000. Add 20% VAT = 6000. But a 20% discount of 6000 = 4800. A lot of people get confused by this and say that it isn’t VAT free because the effective discount on the base + VAT is < 20%.

For all the watches I saw at the T5 Watches of Switzerland store there were two prices - the retail in the UK including VAT, and the price without VAT. As an international traveler, I only paid the price without VAT.

Ultimately, as others have said, if you know what the price of a watch is in your area (where ever that is, and accounting for local discounts and taxes), and you are aware of exchange rates, what your credit card fees are, and import duties, buying duty free MAY be cheaper. But it may not. You have to work out the math yourself, and it will change from case to case. Don’t just assume it will be cheaper.

Your whole post makes no sense.
The prices in WoS at T5 are discounted ‘Heathrow’ prices- not VAT free. It’s pretty clear, though I appreciate the hard of thinking might struggle to understand.

Here is a photo of a couple of Speedmasters I took in there when travelling last year.
4-B695-FF2-62-E1-4857-B89-E-D60-F7-B8-DCB45.jpg

No mention of VAT whatsoever.
Edited:
 
Thegreatroberto
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Chaps. Read my post above. Duty free or discounted is more about the brand. Just if DF, then you are meant to declare it.
Tudor did not want to discount. But recognised the rules about DF. If only they'd have had a BB58. And my mrs was not on the trip!
 
orlis
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If it was duty free, you would need to get duty free form from the seller, stamp them with customs and claim vat free from 3rd party company like globalblue that also take provision.

some shops are offering “duty free” prices meaning you don’t have to go through official procedure, they just offer you upfront better price and on the invoice or receipt, vat should be still there.
I also know about cases where those companies claim they can only give vat free prices for travelers outside EU, any my guess is they have a deal with global blue and are doing this procedure on their own without your involvement, however I don’t know how as they should have also your passport details and prove you are not resident of EU.
 
timestamp
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STANDY STANDY
Try not declaring Meat/pork, fruit or plants in Australia and face a $420 fine and possible visa cancellation and 3 years exclusion ( or prosecution for a resident )

Yep, that can be harsh, but it's a entirely differrent reason. Fruits plants are prohibited to protect the local flora and fauna.

For example in Germany, the actual import duty on watches is negligible (€ 0,85, I think), and what you actually pay is just the 19% VAT. So technically, not declaring the watch is mostly tax evasion and carries the respective penalities.
 
dennisthemenace
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orlis orlis
If it was duty free, you would need to get duty free form from the seller, stamp them with customs and claim vat free from 3rd party company like globalblue that also take provision.

some shops are offering “duty free” prices meaning you don’t have to go through official procedure, they just offer you upfront better price and on the invoice or receipt, vat should be still there.
I also know about cases where those companies claim they can only give vat free prices for travelers outside EU, any my guess is they have a deal with global blue and are doing this procedure on their own without your involvement, however I don’t know how as they should have also your passport details and prove you are not resident of EU.
Some of your points are valid, some are not.
First of all, if you buy a watch airside at a UK airport you will not be able to claim any VAT refund if it is charged (which it shouldn't be).
The only way to reclaim VAT on a watch purchase in the UK is to get a customs form 407 from the retailer showing the amount of VAT paid.
You and the retailer need to sign the form, for which the retailer will probably charge a hefty administration fee. Omega boutiques do, I know from personal experience.
You then need to produce your watch and your passport and your boarding card at the customs office at your point of departure, and if all is above board a customs officer will stamp your form 407 and you can reclaim the VAT.
Note that all customs offices are located before you go through security so if you don't get that form stamped before you get airside you can say goodbye to your refund.
 
STANDY
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timestamp timestamp
Yep, that can be harsh, but it's a entirely differrent reason. Fruits plants are prohibited to protect the local flora and fauna.

For example in Germany, the actual import duty on watches is negligible (€ 0,85, I think), and what you actually pay is just the 19% VAT. So technically, not declaring the watch is mostly tax evasion and carries the respective penalities.

Technically tax evasion and false declaration on a government form
 
orlis
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dennisthemenace dennisthemenace
Some of your points are valid, some are not.
First of all, if you buy a watch airside at a UK airport you will not be able to claim any VAT refund if it is charged (which it shouldn't be).
The only way to reclaim VAT on a watch purchase in the UK is to get a customs form 407 from the retailer showing the amount of VAT paid.
You and the retailer need to sign the form, for which the retailer will probably charge a hefty administration fee. Omega boutiques do, I know from personal experience.
You then need to produce your watch and your passport and your boarding card at the customs office at your point of departure, and if all is above board a customs officer will stamp your form 407 and you can reclaim the VAT.
Note that all customs offices are located before you go through security so if you don't get that form stamped before you get airside you can say goodbye to your refund.

whixh points are not valid then?
 
Donn Chambers
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Graemega Graemega
Your whole post makes no sense.
The prices in WoS at T5 are discounted ‘Heathrow’ prices- not VAT free. It’s pretty clear, though I appreciate the hard of thinking might struggle to understand.

Here is a photo of a couple of Speedmasters I took in there when travelling last year.
4-B695-FF2-62-E1-4857-B89-E-D60-F7-B8-DCB45.jpg

No mention of VAT whatsoever.

no mention of VAT, but the “airport price” is the base price before 20% VAT is added ( the retail prices).

3241 + 0.2*3241 = 3889.2 (rounded up to 3890 retail).

3934 + 0.2*3934 = 4720.8 (rounded down to 4720).

call it what you want, but the Heathrow prices represent the VAT free price.
 
DLT222
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I had to read that title twice...

I thought damn... this guy is ballin.... Buying an Airport.

😁
 
Graemega
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Donn Chambers Donn Chambers
no mention of VAT, but the “airport price” is the base price before 20% VAT is added ( the retail prices).

3241 + 0.2*3241 = 3889.2 (rounded up to 3890 retail).

3934 + 0.2*3934 = 4720.8 (rounded down to 4720).

call it what you want, but the Heathrow prices represent the VAT free price.
Utter nonsense.
 
Graemega
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gatorcpa gatorcpa
Do the math. He is right.
gatorcpa
His maths may be right. But it’s clear it’s a discounted price rather than VAT.
 
gatorcpa
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Graemega Graemega
His maths may be right. But it’s clear it’s a discounted price rather than VAT.
Does it make a difference? 20% is 20%. If you can get that discount without traveling, then it is not VAT.
gatorcpa
 
Graemega
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gatorcpa gatorcpa
Does it make a difference? 20% is 20%. If you can get that discount without traveling, then it is not VAT.
gatorcpa
Correct my point was that it is not VAT- anyone can buy at that price including internal UK flights.
 
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