Finally, here's the BIG question.
Is the 8% sales tax already included in the store's list price, or is it added on?
Can I get the sales tax deducted at the store, or get the refund at the airport?
Thanks.
How long will you be there? If more than 30 days, forget about the VAT refund. Fortunately, Switzerland is a small country. It's not that hard to cross the border and become eligible to claim your refund. You also can get your customs stamps whether you travel by road or rail.
Yes, some very tourist oriented shops will give you a refund to your credit card right there on the spot. The one's that do will have a "tax free" sticker on the window. Global Blue is a common one. Even if they don't have the sticker, you can always ask if they'll refund/deduct the VAT and send the paperwork in for you. Some will. Some won't. Global Blue and Premier Free are third party agencies that will give you the refund on the spot, but they charge a fee (4% of the refund amount) for that service. They are in the airport too. They refund in the currency of the country you are leaving, in your case, that'd be CHF. You're on your own to minimize the exchange rate loss when you convert the money to USD (presumably). They can give you your refund in USD, but their exchange rates will be worse than your banks or a currency changer in the airport.
Below are some of the common tax free stickers you may see. Just because a store doesn't display such a sticker doesn't mean they don't participate in the VAT refund program. It's also worth noting that it is up to the shop's discretion whether it participates in the VAT refund program. That's a decision the shop made on its own long before you show up and has nothing to do with you. The shops that tend to cater to what they consider a fair number of tourists.
I point that out because discounting is infrequent in Switzerland to begin with, and as a tourist, you can pretty well forget about even trying. You're going to ask for a VAT form, so they'll know you are a tourist, even if when you spoke to them they might not have already figured it out. I don't get the sense that you're particularly price sensitive, but it's worth it for you to nonetheless have the right frame of mind, thus expectations.
Now here's the thing. Even if you get your refund via an on the spot deduction by the seller (best for you) or from a 3rd party agency, you still have to have the VAT refund forms stamped at Customs and then mail them back to the refunding business. If you don't, they'll just charge your card for the tax. (Ask a customs worker where a mailbox is or mail it when you get home. Your choice.)
Another way to get your refund is to get your customs stamp, and then put the stamped forms, receipts, etc. in an envelope and drop it in a mailbox in the airport (have sufficient postage on the envelope) and then wait a couple months for a check to arrive or for the credit to appear on your charge card.
Also, if for some reason you opt to have the store ship your items to your home country, they may not (most won't) charge you the VAT, but you'll have to pay the shipping costs.
The last, and by far easiest way to get your VAT refund is to shop in the duty free at the airport. You won't get any discount on the purchase price, but you also won't have to put up with the hassles of getting a VAT refund. As you might expect,
a lot of Swiss watch makes are available in the Geneva airport Duty Free stores. (Click the "detailed card" links to see what shops carry what brands.) Choose whichever Duty Free shop has what you want. Whatever watch you intend to buy, make sure it's not from a watch company that has an international warranty and a separate one for your country, presumably the US; there's no point in paying for a warranty (if you buy the watch, you're paying for it) that won't be valid in your home country. (Call the boutique in your home country and ask them.) If you are concerned about whether they have a specific model either check before you leave the airport or call before you go to the airport to leave the country.
Taking advantage of shopping duty free upon arrival may be the thing for you if know what you want before you leave your home country. I don't know what is your departure city. When my "small town" Southern cousins travel abroad, they like to book their flights through JFK or LAX and give themselves most or all of a day to shop around in either city before returning to the airport to catch their connection overseas. With some advanced planning, that tactic could work for you as it'd allow you to try on some watches that may not be available in your home town, thereby aiding you in determining what you want to buy when you get to Switzerland.
Here are some sites you may find helpful:
Keep in mind that Switzerland is not part of the EU or EEA. That means that if you travel outside of Switzerland and ask for a VAT refund form at a retailer, the card they'll give you will be of no use for Swiss purchases. Technically, the Swiss form can be used to obtain for customs stamps from other countries, but don't do it if you don't have to.
Always make copies of your documents -- plane tickets, passport, VAT forms, receipts, and hotel bill.
There is sometimes the option of getting the refund processed after you return to the U.S. That's easy for me to do; I live in D.C. and the Swiss embassy is literally 15 minutes walking distance from my home. I don't know where the Swiss have consulates.
Other:
If you need to claim a VAT refund for business purposes, the attached guide may be helpful.
All the best.
