I am a U.K. resident and have recently purchased a watch from a Swedish retailer. I was slightly confused by the VAT process. I was was under the impression the retailer in Sweden added local MOM (VAT) @25% for a watch but as they were exporting outside the EU would deduct and refund me. On request for VAT refund the dealer said it was standard to sell the watch with no local VAT as it was “vintage” and ALL their watches displayed, as registered company not private seller, include no VAT. The website shows no indication that VAT is not included in anyway. Is their approach correct according to EU / Swedish consumer protection laws? I feel they are trying to overcharge me 25% for the watch which I now need to pay import duty and 20% tax on. Thanks in advance.
Jeff TM
UK customer EU VAT not added
It depends. I'd say, check the invoice. If it mentions the VAT, you paid VAT and are eligible for that sum to be refunded. If it mentions 0% VAT (as it should), you're only due to pay VAT in the UK.
I'm not sure about that store not having to charge VAT at all for antiques. Could you post the link and/or send me the link in private (Not sure if a new member can send a PM, by the way...) so I can take a look at the website?
In short. The invoice is leading here.
I'm not sure about that store not having to charge VAT at all for antiques. Could you post the link and/or send me the link in private (Not sure if a new member can send a PM, by the way...) so I can take a look at the website?
In short. The invoice is leading here.
I think they could and should deduct local vat, but they may not. In any case you are likely to find UK customs charge 20% vat plus a processing fee. Some sellers have a tax arrangement with the UK, which is why eBay and aliXadd vat onto the purchase cost
FWIW, Invicta don't deduct the vat when they ship out of NL either.
FWIW, Invicta don't deduct the vat when they ship out of NL either.
The company cannot settle the VAT if it operates by buying vintage watches from private sellers. Somebody else has paid the VAT long time ago but the without the original papers they cannot calculate the base price and cannot get the refund when the watch is exported.
However when you import the watch to UK, you are indeed "adding value" so you have to pay the VAT on top of the purchase price. It is no different to buying used watches from private sellers from within the EU - if the seller has the full paperwork he can offer the watch to you at the lower price, then export it and refund the VAT they paid long ago, and then you pay your own VAT. But if they don't have the papers, they cant get the refund and they have to sell it with the VAT included and still you have to pay another VAT on top of that. That's how the brexit has effectively killed the used watch market between EU and the UK.
However when you import the watch to UK, you are indeed "adding value" so you have to pay the VAT on top of the purchase price. It is no different to buying used watches from private sellers from within the EU - if the seller has the full paperwork he can offer the watch to you at the lower price, then export it and refund the VAT they paid long ago, and then you pay your own VAT. But if they don't have the papers, they cant get the refund and they have to sell it with the VAT included and still you have to pay another VAT on top of that. That's how the brexit has effectively killed the used watch market between EU and the UK.
Rather than the EU seller refunding local VAT, the procedure seems to be that sellers don't charge VAT at all, but the UK buyer then has to pay UK VAT upon delivery (usually via the courier, who charge a nice fat fee for sending a couple of automated e-mails)
Most sites I have looked at since Brexit will state a price inclusive of any customs charges, as let’s face it we don’t have a clue what is due and when any more.
If it doesn’t say this up front I would always check first, little unexpected bills are not condusive to us “Having a nice day now” after all.
If it doesn’t say this up front I would always check first, little unexpected bills are not condusive to us “Having a nice day now” after all.
Well, since UK no longer is a part of EU the store should NOT add Swedish tax. All sales that goes to a non EU (plus a few exemptions) will be taxed in the home country by the customer. Otherwise you will be double taxed. 😎
/Freddie
/Freddie
I'm living in Denmark and we operates with 2 types of tax on watches.
All New watches purchase directly from manufacture will be applicable for tax refund shipping outsider EU.
A used watch sold is taxed with " used tax" and that tax they don't refund.
I have just tried to purchase a watch to a friend living outsider EU and they explained the rules for "used tax" on used watches.
That was news to me as I have livets 10 years outsider EU shopping a lot in EU.
Maybe Sweden have the same tax system.
Sendt fra min ONEPLUS A6003 med Tapatalk
All New watches purchase directly from manufacture will be applicable for tax refund shipping outsider EU.
A used watch sold is taxed with " used tax" and that tax they don't refund.
I have just tried to purchase a watch to a friend living outsider EU and they explained the rules for "used tax" on used watches.
That was news to me as I have livets 10 years outsider EU shopping a lot in EU.
Maybe Sweden have the same tax system.
Sendt fra min ONEPLUS A6003 med Tapatalk
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