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The taxing issue of buying watches from abroad.

V
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I touched on this in another thread, but that one seemed to become derailed by a Brexit argument. Apologies therefore if this sounds familiar.

I am in the UK and my understanding is that if I buy a watch from anywhere outside of the UK I now have to pay 20% VAT.

However, I suspect that most countries levy taxes on their business sellers. Is this typically the case and is it commonly possible to have them deducted if the watch is for export?

Currently, I see watches on Chrono 24 and the price may be fair. If I have to add 20%, without being able to reclaim local taxes, the deal suddenly seems less appealing.
 
aggie
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True, it's unfair but it is the way things work I am afraid , were you within or out the uk. I didn't find yet the possibility of being repaid of the local taxes when you buy abroad on line...
Edited:
 
V
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aggie aggie
True, it's unfair but it is the way things works I am afraid , were you within or out the uk. I didn't find yet the possibility of being repaid of the local taxes when you buy abroad on line...

In shops we do offer "tax free for tourists" as far as I am aware.
 
Tad
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Appreciate the current challenges with travel restrictions but I’ve previously combined the purchase of a watch with a trip abroad. If you live in the UK and the seller is based in Europe then with a cheap flight this might be more financially viable, depending on the cost of the watch.

It’s also a lot more fun and less nerve racking compared to waiting for watch to transit thru the postal system. I’ve met some great sellers this way along with the added benefit of eyeballing the watch prior to purchase.
 
V
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Tad tad
Appreciate the current challenges with travel restrictions but I’ve previously combined the purchase of a watch with a trip abroad. If you live in the UK and the seller is based in Europe then with a cheap flight this might be more financially viable, depending on the cost of the watch.

It’s also a lot more fun and less nerve racking compared to waiting for watch to transit thru the postal system. I’ve met some great sellers this way along with the added benefit of eyeballing the watch prior to purchase.

Yay, I have trips to the Italian lakes and Florida coming up this week then. 😉
 
aggie
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V Vizard
In shops we do offer "tax free for tourists" as far as I am aware.
Yep! But on line.... never saw something similar, unfortunately !
 
gatorcpa
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Here in the US, sales tax is generally on the buyer, not the seller. However, it is the responsibility of the seller to collect and pay to the home state of the buyer. Most of the big e-sales platforms will handle this for sellers as part of the fee they collect on the sale.

There is no sales tax on buyers outside the US, but you have to deal with your own governments on the import taxes or VAT.

Tad tad
If you live in the UK and the seller is based in Europe then with a cheap flight this might be more financially viable, depending on the cost of the watch.

If you declare your purchase and the customs agent waves you through, then you’re a winner. If you are not, I wouldn’t be advertising that fact here. You never know who might be reading this. 😒

gatorcpa
 
Davidt
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I’m in the UK and it’s never +20%. More like 25-28% by the time the various taxes and fees are added.

They are almost always added as well, unlike some other countries where it’s more hit and miss
 
V
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Davidt Davidt
I’m in the UK and it’s never +20%. More like 25-28% by the time the various taxes and fees are added.

They are almost always added as well, unlike some other countries where it’s more hit and miss

Adding 1/3 to the purchase price makes buying abroad from most locations non-viable as far as I can see.
 
Davidt
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V Vizard
Adding 1/3 to the purchase price makes buying abroad from most locations non-viable as far as I can see.

Yep. I can’t recall the last time I bought a watch out of the EU (or UK since brexit).
 
V
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gatorcpa gatorcpa
Here in the US, sales tax is generally on the buyer, not the seller. However, it is the responsibility of the seller to collect and pay to the home state of the buyer.
😒

gatorcpa

It's the same here in the UK, but the sticker price in retail stores generally includes the tax. I seem to recall that the US is the same however, which is why I presumed that Chrono24 prices included an element of tax that isn't actually due if the watch is for export.
 
paddymoran
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Davidt Davidt
I’m in the UK and it’s never +20%. More like 25-28% by the time the various taxes and fees are added.

They are almost always added as well, unlike some other countries where it’s more hit and miss
Same in Ireland unfortunately. I think VAT is 23.5% and customs/ duty 6% plus a fee. It was relatively hit and miss here until Brexit. Due to Brexit there’s been a step up in checking post and I don’t think anything now gets through without being assessed for VAT and duty.

Controversial I know but if you’re located in GB and you know someone in NI can you get post delivered to NI and then onto GB??
 
gatorcpa
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V Vizard
I seem to recall that the US is the same however, which is why I presumed that Chrono24 prices included an element of tax that isn't actually due if the watch is for export.
That’s not true. Prices in the US rarely include local taxes. Gasoline being a big exception.

Unlike the UK or EU, we do not have a national sales tax. Think of the US as a group of 50+ separate countries, each with their own laws, tax rates and enforcement procedures. It’s like a giant Schengen zone.

Which is why I chuckle at all the hand wringing on this thread. We’ve been dealing with it for years for large businesses and major import purchases.

Unlike the Brexit spat, this usually doesn’t affect the average person selling a watch here or on Chrono24, as most states have a floor below which private sellers are not required to collect sales tax.

gatorcpa
 
wagudc
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gatorcpa gatorcpa
Unlike the Brexit spat, this usually doesn’t affect the average person selling a watch here or on Chrono24, as most states have a floor below which private sellers are not required to collect sales tax.

gatorcpa

Indeed. As you said before though, sellers are not required to collect the sales, but in California (for example) the buyer is required to report it on annual state tax form. If you are being above board, then you have to pay it one way or another.
 
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