If you are coming to Switzerland and looking to buy a watch, you might be wondering if it will be any cheaper in Switzerland.
No, Swiss watches are not any cheaper in Switzerland than anywhere else in the world. The Swiss watch companies generally keep the prices the same around the world.
However, you could save money on the Swiss taxes if you are taking your watch back home.
If the watch has roughly the same price in your home country, then you could be saving around 7%.
Tax on Swiss Watches
In Switzerland, there is a general Value Added Tax (called Mehrwertsteuer MwSt) that is 7.7% on the value of the product. This VAT also applies to watches.
An Example of Taxes On An Expensive Swiss Watch
If you are buying a watch with a price of CHF 10,000, this is the breakdown of the value and taxes
Price: CHF 10,000
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Value: CHF 9285
VAT: CHF 715
So, if you were to get the taxes back on this Swiss watch when leaving Switzerland, you would pay around 7% less than the listed price.
Of course, you might also have to pay taxes on such an expensive item when you get home, depending on where you come from of course.
Claiming A VAT Refund When Leaving Switzerland
There are a few things you have to do to claim the VAT back when you leave Switzerland, so be sure you know the rules and requirements before buying your watch in Switzerland. There is some paperwork involved and if you are saving a thousand dollars you don’t want to arrive at the airport and not have everything you need.
In general, these rules need to be followed:
- Non-resident of Switzerland
- Leaving Switzerland
- An export permit (ask for during purchase)
- Watch value exceeds CHF 300
- Reclaim VAT within 30 days of purchase
