1. Use established providersa. A lot of stores in Switzerland work with specialised VAT refund companies like Global Blue Refund or similar companies. They have established processes and it makes your life easy – but there is a cost attached to it…
b. So instead of refunding the full 8% VAT these companies take their share for their service. At Global Blue Refund you will get a 6,4% refund.c. And this is how it works: mostly in the entrance area you will see their company logo or you ask in the store. Once you purchase you will be provided with a form, fill it out and you will get the watch directly 6,4% cheaper !
2. VAT Refund with direct tax refunda. Some stores want to offer their clients more and special service – it is more complicated for the stores but it will guarantee you a better refund of the full 8%.
b. And this is how it works: in this case the retailer will deduct the 8% straight from the purchasing price, but will keep the VAT refund blocked on your credit card. You will be provided with the official Swiss customs form and at the airport or at any boarder you have to ask the Swiss custom people to give you the official stamp. Then return the form to the retailer and you have saved 8% !
Of course you can wear your watch on your wrist and pretend that this watch was purchased a long time ago in your country… but this is illegal!… in some EU countries, Taiwan and China the customs work with the Swiss customs… and when you get caught then it gets expansive since you pay the VAT of your country and in most cases a fine of 50% of the value of your purchased goods… Outsch!!!If you like this article we would be thankful if you share it via your social media channels – many thanks!