No idea if you can claim the local tax back, but you will have to pay 20% when you arrive in the uk.
Happy days
Hello,
I wondered if I could get a sanity check from people that may have gone through this process already, post-brexit.
If I (a UK citizen) travel to an EU country and want to buy a new watch. Am I able to claim that countries VAT back at the airport when I leave to come home?
Global Blue: https://refund.globalblue.com/web/fa...gn=hp_carousel
Let's take an example:
I buy a watch for €10,000 in an EU country, that has a tax rate of 20%. Can I claim the €2,000 back at the airport?
Are there any further things I need to do when I return to the UK?
No idea if you can claim the local tax back, but you will have to pay 20% when you arrive in the uk.
Happy days
Cheers,
Ben
..... for I have become the Jedi of flippers
" an extravagance is anything you buy that is of no earthly use to your wife "
You will not get back 20%, but about 15%, because of GlobalBlue takes their cut.
Then you have to pay VAT in UK, unless item is cheaper than around £300 (check with customs, I don't recall what is the limit)
An edge case I know, but if I as a Uk resident bought tax free in Spain then left the item in our flat there, is VAT liable anywhere?
Last edited by Scepticalist; 4th September 2021 at 14:37.
Quick answer - get a VAT refund
from the retailer! Or stamped form and then You have to get your documents stamped by a customs officer at the point of exit of the EU.
As others have said - you need to pay the UK 20% VAT on entry to the UK - so it all works out much the same Nett payment - factor in x-rates and admin costs charged for the service and you may as well buy in UK unless there is some deal happing you know about in EU. There may be some desirable watch only available in EU for example.
VAT refunds for non-EU tourists
EU retailers can provide a VAT refund for goods sold to non-EU tourists when exporting them. Specifically this covers:
- Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU.
- EU nationals living outside the EU (who can prove this with a residence permit or similar).
Conditions
- The tourists must provide proof of residence (e.g. non-EU passport or residence permit)
- The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this.
- The value of the goods bought must be above acertain minimum (set by each EU country).
- Retailers can either refund the VAT directly or use an intermediary. One or other of them may charge afee, deductible from the refunded VAT amount.
More on VAT refunds for non-EU touristsSearch for available translations of the preceding link
Last edited by MartynJC (UK); 4th September 2021 at 19:45.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
I have just purchased a watch from an online retailer in Germany which is currently in transit with UPS.
How and when do I pay the UK VAT and customs?
Will I get an Invoice via email prior to delivery?
Thanks
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Cheers,
Ben
..... for I have become the Jedi of flippers
" an extravagance is anything you buy that is of no earthly use to your wife "
Hypothetically, if you got a VAT refund at the airport or from the the retailer, and wore the watch on your wrist back to Britain, would the British authorities know that you've benefitted from this refund?
I've always wondered about this. If I bought a watch abroad I'd simply wear it for travelling home with the box in the luggage. Surely it's as easy as that?
This is a public facing part of the forum. If you pay the VAT on entry that’s fine. Else, I would be very careful posting that you are proposing TAX EVASION. Best to keep that to yourself?
BTW - often in USA Malls there are dedicated tax return areas to get the tax back straight away if you have the correct documents with you (see gov site above for details)
This topic has been done to death already quite a few times. I don’t think our forum owner promotes illegal practices.
Last edited by MartynJC (UK); 5th September 2021 at 08:49.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
OP. I see aanswers are provided in that link! (If the shops are in the global blue scheme) Use the app to get quick refund as you leave the EU.
I wonder if there is a reciprocal App for visitors to the UK from the EU as I emigrate soon!
well UK .gov have well and truelly closed that door (how to promote tourism and equality with 3rd countries - not)
“You can only buy tax-free goods from shops in Great Britain (England, Wales and Scotland) if they’re delivered straight to an address outside the UK. Check with the retailer if they offer this service.“
Martyn.
Anyway enjoy your trip to EU wherever you go and that app looks like it does the legwork for you!
Last edited by MartynJC (UK); 5th September 2021 at 09:07.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
+1 to this-
I’m sure there was a case reference an Airline Pilot who got caught bringing in a Rolex Sub or GMT, got pulled in by U.K. Customs.
I’ll see if I can find a link…..
https://www.rolexforums.com/showthread.php?t=564739
Does anyone know if preowned watch dealers in Europe charge VAT and whether they would deduct this before shipping to the UK? Thanks!
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Someone who lies about the little things will lie about the big things too.
In addition to 20%vat on import to U.K. you’d also have to pay duty, which is calculated based on whether the item is manual or electronic watch etc. Get advice would be my opinion!!
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Why isn’t duty payable for watches? Post-Brexit, I’ve had to buy some stuff from the EU, such as motorcycle clothing and parts. Everything had import duty (plus VAT) added to it.
There is duty, but it's miniscule in comparison to the VAT
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Someone who lies about the little things will lie about the big things too.
In short, it’s not worth the hassle. Just buy it locally and relax?
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A friend of mine, many years ago, bought a decent watch (not sure what now) and decided to dodge the VAT by wearing it.
Unfortunately he kept the packaging and receipt in his luggage and got a spot check.
Result, VAT paid and the watch ended up costing more than if he'd bought it in the UK.
That said, it's very unusual to get a spot check these days (or even to see customs officials in the green channel).
M
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Breitling Cosmonaute 809 - What's not to like?
Is your friend's name Karl-Heinz Rummenigge?
https://www.dw.com/en/german-authori...ine/a-17218422
Someone who lies about the little things will lie about the big things too.
Thank you all for the insights, it does look like there are defined routes for this and I'll see if the opportunity presents itself later this month.
Just to point out that not only is VAT evasion illegal but HMRC are about the worst people to get on the wrong side of unless you want the forces of darkness unleashed on any tax return you submit in future and to get stopped by customs every time you re-enter the country due to being on their watch list. Isn't worth it and on an expensive watch where the VAT evaded may be in the thousands, well just imagine the treatment you'd get if you stole a couple of thousand pounds from a company and how the Police would look upon that. A bit different to smuggling a bottle of undeclared Whisky through let's put it that way.
That being said if you can get a VAT refund (and if the watch is new and the seller is registered for VAT this ought to be possible) then it kind of evens out what you'd pay upon entry to the UK.
You're completely correct. Hence I'm keen to find out the legit way to do this! The summary I am taking from the advice and links provided is:
Buy the watch
Get refund (which might have a service fee of 5%) at the airport or whilst in the store at the time.
Fly home
After collecting bags upon arrival make sure to go through the red channel, not green and declare the purchase. Pay UK VAT on it.
So I might end up paying 5% higher price overall due to the VAT refund service fee.
I was on the receiving end of a spot check once at Heathrow. I was hand luggage only coming back from California after a very short business trip. I had actually bought an iPad (which I think was under the VAT limit anyway) but definitely got the impression he was looking for much higher value items - he wasn’t interested in the iPad at all.
It was enough to convince me never to even consider trying to dodge a tax like this. Some black marks probably never leave your record… Just take the red channel and cough up
For interest, here’s example of a procedure for buying VAT free in the UK. Buying abroad will be similar, could be slicker if an agent is used: -
https://www.manchesterairport.co.uk/...s/vat-refunds/
It seems that Manchester Airport need to update their website. The VAT Retail Export Scheme no longer applies;
https://www.visitlondon.com/travelle...money/tax-free
https://www.gov.uk/government/public...ing-concession
Were we not once able to provide passport etc at a shop and have local vat removed? I remember this happening in the USA many years ago. We then had to pay the UK vat upon return.
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This spring a member of Parliament of Latvia went to Switzerland and bought some Rolex watch. Of course she claimed her VAT back in airport. As there were no direct flights between Geneva and Riga she had connection in Warsaw. After arrival she chose to go through green gates, got stopped, paid VAT and fine.
No one knows why she was stopped - did Swiss customs informed Polish colleagues or she was stupid enough to carry Rolex shop bag, who knows. As she is member of populist party, did not had any savings during past 3 years that would allow her to buy 12K watch no one was sorry for her.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
it used to happen in the UK many years ago. I believe that it was a requirement for shops to hold a book for any transactions where the vat was repaid due to the customer being a traveller who was taking the goods back out of the country. It slowly became an outsourced system where a secondary company would do all the paperwork and charge for the privilege and eventually became a system where by the vat had to be claimed back by filling out a form and handing it over at an appropriate airport.