If you buy a luxury watch from a UK seller, it looks like a good deal until you get to the point of delivery.
EU import VAT, courier handling fees, customs declarations and simply not being able to buy from some international sellers make it too expensive.
That’s where Parcel Flow makes online shopping easier. You can buy from UK shops that don’t sell to Europe and then arrange international shipping to your European address.
And that’s the important point:
a forwarding address doesn’t automatically negate VAT charges and customs duties.
The key is understanding where the watch comes from, what it’ll cost you and avoiding needless shipping fees.
The Cost of Buying a Watch from the UK
You may no longer be able to visit your favourite shop in person but online shopping is still a relatively new experience for many UK traders.
Since Brexit, the UK is considered as a non-EU country for customs.
When you place an order from a UK retailer into Europe, the same general rules regarding the import of goods that apply to other non EU orders will still stand.
Even for an expensive Rolex, Omega, Tissot or other luxury watch just a tiny fraction of those additional charges adds up to several hundred euros.
Consider this in terms of the total landed cost:
- Watch purchase price (sales price including UK VAT)
- International shipping to your delivery address
- EU import VAT charge
- Potential customs duty
- Courier or customs clearance handling fees
- Insurance of a high value parcel
Choosing the lowest UK price isn’t always the best deal on arrival.
Can You Save VAT on a Luxury Watch?
What buyers really need to be careful of is UK VAT and EU import VAT.
While UK standard VAT is currently 20%, whether a retailer is able to sell without UK VAT depends on the sale and export arrangements.
Tax-free shopping in Great Britain is even permitted if the eligible merchandise is delivered directly to an address outside the UK though GOV.UK stipulates that you must think in terms of importing the watch into your own country to work out the taxes.
Removing UK VAT isn’t the same as importing a watch tax free in the European Union.
This is because, even if you manage to import the item into your own country without VAT, it may be subject to VAT in your destination country.
In fact, GOV UK states that online purchases from UK retailers are subject to the post-Brexit import rules of the European Union so don’t immediately assume your luxury watch is VAT free.
The best solution is to look at the complete cost including VAT of importing the goods.
Use UK Addresses for International Shipping
Cost effective cross-border shopping is not just about VAT; it can also be about delivery restrictions.
Many UK retailers just won’t sell outside Britain, while others may prohibit international purchases because of corporate insurance agreements, fraud detection issues, expensive customs paperwork or exclusive courier arrangements.
Using a UK-based shop to Europe service will give you a UK address, which means that the retailer can deliver your purchase even if it doesn’t ship to Europe directly.
With Parcel Flow you will be given a free UK delivery address.
You can then provide it when you complete your purchase at eligible shops. After that, you simply arrange for your parcel to be forwarded to your European address.
This really helps if you know that a retailer is only going to give you a UK price but restricts delivery outside the UK.
What About a Belfast Shipping Address?
A Belfast shipping address can be especially useful as well because Parcel Flow has a forwarding warehouse based in Belfast.
Don’t be mistaken that simply using a Northern Ireland address is the same as not paying VAT.
There are special rules about customs in Northern Ireland, depending on whether you’re ordering the item to be exported to Europe or your original country.
There is also guidance in GOV.UK about VAT being exempt under the post brexit rules for shops in Northern Ireland.
It’s best to think of using a Belfast shipping address as a shopping and forwarding tool and not as a VAT deduction.
Understanding Customs When You Import UK Watches
When shopping across borders, it’s easy to forget the critical issue:
Where was the item manufactured?
A watch being advertised by a British retailer doesn’t necessarily mean it was produced in the UK.
For example, a Swiss-made Omega watch purchased from a UK shop still has Swiss export requirements for customs declaration purposes.
Under the EU UK Trade and Cooperation Agreement, duty free treats are available for products that originated in an EU or UK origin country so long as the goods satisfy the applicable rules of origin.
Otherwise, customers will have to pay EU import duties.
This is very important when importing UK watches.
Before you buy, ask your retailer:
- What is the country of origin for the watch?
- Was it constructed in the UK?
- Will it qualify for exports without UK VAT?
- What customs documents will accompany the parcel?
- What warranty and insurance cover is available across borders?
It’s so much better to find out before purchase rather than on delivery.
How Parcel Forwarding Can Help Reduce Your Overall Cost
A forwarding service is especially helpful if it reduces unnecessary price friction and gives you control of international delivery costs.
Say, for example, you discover a watch at a UK shop that won’t be sent across borders.
Instead of letting it go, you could use your Parcel Flow UK address at checkout, have the seller deliver domestically and then choose a suitable international delivery method.
You can also reduce the costs of delivery by consolidating a number of eligible parcels together rather than getting four different international shipping quotes.
Neither of these options will remove VAT or any other legally applicable customs duties, it just makes your logistics a little less expensive.
You can compare parcelflow co uk against international delivery and check on the total landed cost, not just the price of the watch.
A Quick Rule of Thumb
Think of the following costs before pressing the “Buy” button:
Watch’s retail price + shipping + import VAT + taxes + handling fee = true landed cost
Compare that to the same model of watch purchased from an EU online store.
This simple calculation will help you establish whether a UK seller truly can provide you with a bargain.
For luxury watches, keep insurance costs in mind. You should never consider a £5,000 watch as equal to a £100 branded accessory.
The Easiest Way to Make a Saving
First and foremost, the aim isn’t to avoid customs, it’s to pay the fewest amount of taxes legally possible.
By the time the parcel arrives in your country, it should be free from avoidable VAT, taxes, duty or handling charges.
When an outlet simply can’t dispatch to your country, use your UK address from Parcel Flow, double check if there’s an exemption to UK VAT, determine the origin of the watch, weigh up your destination country’s import VAT and check for customs duties, before submitting your purchase.
Then, use our free, UK based addresses to make your UK purchase and international shipping to your door easier.
Conclusion
On the face of it, purchasing a UK luxury watch appears to be a smart purchase but only if you add up the whole cost first. Use your Parcel Flow UK address to overcome delivery restrictions, check whether UK VAT is legitimately eliminated before shipping internationally, establish the origin of the watch pre plan your customs charges and then compare the all in final cost with the same product from an EU-based retailer.
