Buying Rolex in EU after 31st Dec

[jackliebling]

Dear All,

I've been offered a couple of difficult to find Rolex's by a local AD in Spain. If I were to buy them after Jan 1st they say that I can claim the 15 percent VAT back in the airport because of Brexit.

I just want to clarify that this still true now that we have a trade deal?

Thanks,
Jack

[nikaiyo2]

jackliebling said:

Dear All,

I've been offered a couple of difficult to find Rolex's by a local AD in Spain. If I were to buy them after Jan 1st they say that I can claim the 15 percent VAT back in the airport because of Brexit.

I just want to clarify that this still true now that we have a trade deal?

Thanks,
Jack

You would then have to pay 20% VAT on import into U.K. I think!

[HarrySmash]

You would be able to claim Spanish sales tax back but UK VAT/ import duty would be due for any purchase above the 'tax-free' limit when bringing the item back (if it was declared on arrival!). For a watch that is hard to buy over here though, the extra 5%+ might make the purchase worthwhile...

The bigger issue might be actually getting out to Spain make the purchase...

[GC8]

As I suspect that you realise: it depends on the details of the deal.

[bodmino]

My experience of claiming tax back on departure is that you only receive a fraction. There are various administration charges involved which can amount to 50% or more if what you were expecting to receive.

[GC8]

No customs duties so full VAT at origin and nothing to claim back or pay out.

[alorotom]

nikaiyo2 said:

jackliebling said:

Dear All,

I've been offered a couple of difficult to find Rolex's by a local AD in Spain. If I were to buy them after Jan 1st they say that I can claim the 15 percent VAT back in the airport because of Brexit.

I just want to clarify that this still true now that we have a trade deal?

Thanks,
Jack

You would then have to pay 20% VAT on import into U.K. I think!

If its declared.

Nothing to stop the OP claiming the VAT at the airport refund counter and then not declaring on entry. Same as the vast bulk of people who buy in the US / UAE / Hong Kong / Singapore etc...

[funinhounslow]

alorotom said:

If its declared.

Nothing to stop the OP claiming the VAT at the airport refund counter and then not declaring on entry. Same as the vast bulk of people who buy in the US / UAE / Hong Kong / Singapore etc...

Well there are two things.

1 It’s illegal

2 You can’t insure a smuggled watch

[blingybongy]

funinhounslow said:

Well there are two things.

1 It’s illegal

2 You can’t insure a smuggled watch

Re 2.
Bet you can.

[funinhounslow]

blingybongy said:

funinhounslow said:

Well there are two things.

1 It’s illegal

2 You can’t insure a smuggled watch

Re 2.
Bet you can.

Should have been more precise. If you claim on insurance when your watch is nicked or damaged the insurance co is under no obligation to pay out if they establish the watch was smuggled.

[EX51GE R]

funinhounslow said:

Should have been more precise. If you claim on insurance when your watch is nicked or damaged the insurance co is under no obligation to pay out if they establish the watch was smuggled.

So you have a sales receipt to prove value and ownership, do they ask for proof of all import duties paid too ?

[Nemophilist]

How is that possible when a Rolex received as a gift would be covered and you’d have no proof the giver hadn’t smuggled that in

Or if you inherited one etc etc etc

[funinhounslow]

EX51GE R said:

So you have a sales receipt to prove value and ownership, do they ask for proof of all import duties paid too ?

If you have a receipt showing the watch was purchased tax free overseas why wouldn’t the loss adjuster ask for proof import duties were paid?

I am just pointing out that smuggling a watch in gives an insurance company a reason to deny a claim, that’s all.

[i4got]

funinhounslow said:

EX51GE R said:

So you have a sales receipt to prove value and ownership, do they ask for proof of all import duties paid too ?

If you have a receipt showing the watch was purchased tax free overseas why wouldn’t the loss adjuster ask for proof import duties were paid?

I am just pointing out that smuggling a watch in gives an insurance company a reason to deny a claim, that’s all.

Surely all an insurance company has a right to ask for is proof of ownership and/or a recent valuation certificate? I've checked small print on a couple of specialist insurers and thats all that is requested.

[EX51GE R]

You have paid tax on it just not uk tax. My insurance states every 'X' years they require a new up to date valuation on jewellery and watches, so if you give them the watch alone with no box,papers or receipt if it gets stolen or lost the insurance pays out based on that valuation.

[blingybongy]

i4got said:

Surely all an insurance company has a right to ask for is proof of ownership and/or a recent valuation certificate? I've checked small print on a couple of specialist insurers and thats all that is requested.

Precisely.

[Evoluzione]

EX51GE R said:

funinhounslow said:

Should have been more precise. If you claim on insurance when your watch is nicked or damaged the insurance co is under no obligation to pay out if they establish the watch was smuggled.

So you have a sales receipt to prove value and ownership, do they ask for proof of all import duties paid too ?

As it is now (and has been for donkeys) if you send an item out of the EU then the value you put on the forms to insure it is what they pay tax on at the other end when they receive it. You can't put one value on one (insurance) form and a different on the value (for tax purposes) form.
So you put whatever value you want on the forms and take a risk if you undervalue it for customs, if it goes missing that's all you'll get paid out.

This is why a lot of people are backing Brexit, because for many years they've been trading between countries outside of the EU and saving a fortune. Now they've got the chance to do it with a whole bigger market than before.

Outside of those dishonest dealings when you play it by the rules is where your 'Trade deals' come in. As it stands at the moment between us and the U.S. THEY can buy from us and not get taxed for the first XXXX pounds worth of goods (I forget, but IIRC it's somewhere between £1000 and £2000).
It looks like we got the stty end of the stick there as we get taxed on every penny when importing from them, but I think this particular deal is to make up for the difference in value from the £ to the $ and to equalise them so £1 = $1. Maybe it's to encourage them to buy from us as they don't usually, I'm only guessing.
What deal we've got with China I don't know, but I don't seem to get any import duty on small items from there, more expensive ones you do so it's probably like the US deal.

I don't know where the OPs vendor has got 15% from, it's neither their VAT level or ours, but until Jan 1st it's still at zero between us. Maybe they've quoted some 'trade deal' figure. You need to ask them where 15% came from, not us.
I don't think you'll be better off, they'll probably add 15% on then you'll claim it back perhaps.

I'm guessing in the future if you're over there and clearly a British holidaymaker you'll be asked for your passport and charged accordingly. If you want to physically bring something back at their screen price without being taxed you'll need to give your Spanish friend the money to pay the vendor for the watch, put it on your wrist and come home.

Edited by Evoluzione on Saturday 26th December 19:15

[EX51GE R]

I don't think any of us are on about insuring it for postage reasons. The issue is once it's in the UK and you've owned it for a while if it got stolen whats the insurance situation.

[Evoluzione]

EX51GE R said:

I don't think any of us are on about insuring it for postage reasons. The issue is once it's in the UK and you've owned it for a while if it got stolen whats the insurance situation.

I don't think you've read any of the thread if you think that.
If you want an evaluation for insurance purposes then speak to your insurance company and/or go see a jeweller.

[EX51GE R]

Evoluzione said:

I don't think you've read any of the thread if you think that.
If you want an evaluation for insurance purposes then speak to your insurance company and/or go see a jeweller.

Copied from your post...

you put whatever value you want on the forms and take a risk if you undervalue it for customs, if it goes missing that's all you'll get paid out