Buying Rolex in Jordan......and VAT

[No SUBctitute]

I have a question about buying a Rolex/Tudor at an AD in Jordan.

VAT is 16% in Jordan, and in most countries you have to pay the VAT when buying the watch and then claim VAT back when you leave the country.

I have a friend who bought a Tudor from an AD in Jordan, but was told that the 25% discount he was being given included not having to pay VAT.

In this case, did the AD just not collect the VAT, and not pass it on to the government? Is it legal for a business in Jordan to do that?

Do you know where I can get Jordanian Tudor prices?

[joli160]

I assume you are not the tax collector for the Jordan government ?

25% discount would make me happy

[INC]

Originally Posted by No SUBctitute

I have a friend who bought a Tudor from an AD in Jordan, but was told that the 25% discount he was being given included not having to pay VAT.

If it is an authorised "tax free" shop, then you can buy without VAT, your only duty is to take the watch out of the country. In some countries you have to declare about this fact when you LEFT the country, or even left a document there, that the watch was REALLY left the country.

[No SUBctitute]

Originally Posted by joli160

I assume you are not the tax collector for the Jordan government ?

25% discount would make me happy

Haha. No, I am not.

Originally Posted by INC

If it is an authorised "tax free" shop, then you can buy without VAT, your only duty is to take the watch out of the country. In some countries you have to declare about this fact when you LEFT the country, or even left a document there, that the watch was REALLY left the country.

I figured that's how it worked, but my friend actually wasn't sure. He just knew that he got the discount.

So, not paying 19% VAT would be a 16% discount off MSRP. And the AD in Jordan throws another 9% discount in there, and boom there is your 25%.

So the AD is really only giving 9%. Seems reasonable for a Tudor.

[majidessa]

I might be able to help you here, the AD in Jordan (one boutique for both brands) is not an authorized Tax free shop. The prices of Tudor and Rolex watches in Jordan are not officially communicated in their respective websites.

The practice is, AD will price the watch at relatively higher price than the official list price including VAT but after discount you might end up with some REAL discount espcially if pay with CASH. This is only applicable on certain models (non hyped).

Prefered payment method is cash in order to get the best deal. In many cases, no receipt will be provided (for tax purposes) but you will receive the full set with all the papers/ documents and the white hang tag.

The process of buying Rolex differs from Tudor. The AD in Jordan sells Rolex watches to short list clients, since Jordan is a small country, their supply of watches is relatively small, around 400 per year (educated guess). No discount on Rolex watches are offered, especially for SS models, that if you are lucky to get one in the 1st place. The price will be the same as Europe plus tax. Some discounts are offered on few TT/PM watches like lady datejusts around 5% to 10% depending on availability. By the way, the availability of TT Datejusts in 31 and 36mm is much better than other parts of the world.

Final thought, the AD in Jordan is a long established family business with good customer service. However, like everywhere else the increased supply have impacted their business model and for Rolex watches they prefer to deal with established clients.

[No SUBctitute]

Originally Posted by majidessa

I might be able to help you here, the AD in Jordan (one boutique for both brands) is not an authorized Tax free shop. The prices of Tudor and Rolex watches in Jordan are not officially communicated in their respective websites.

The practice is, AD will price the watch at relatively qhigher price than the official list price including VAT but after discount you might end up with some REAL discount especially if pay with CASH. This is only applicable on certain models (non hyped).

Prefered payment method is cash in order to get the best deal. In many cases, no receipt will be provided (for tax purposes) but you will receive the full set with all the papers/ documents and the white hang tag.

The process of buying Rolex differs from Tudor. The AD in Jordan sells Rolex watches to short list clients, since Jordan is a small country, their supply of watches is relatively small, around 400 per year (educated guess). No discount on Rolex watches are offered, especially for SS models, that if you are lucky to get one in the 1st place. The price will be the same as Europe plus tax. Some discounts are offered on few TT/PM watches like lady datejusts around 5% to 10% depending on availability. By the way, the availability of TT Datejusts in 31 and 36mm is much better than other parts of the world.

Final thought, the AD in Jordan is a long established family business with good customer service. However, like everywhere else the increased supply have impacted their business model and for Rolex watches they prefer to deal with established clients.

Very interesting information. Why would no receipt be provided? Is there some reason they don't want you to collect your VAT refund upon leaving the country?

The Karnig AD website lists the BB58 for 3230 JOD, the equivalent of $4557 USD (its $4000 in the US market)
https://www.karnig.com/watches/TUDOR...8-M79030B-0001

Are you saying that 3230 JOD price at the Karnig AD is higher than the actual Tudor list price in Jordan?

The Jordan VAT refund website says that: "Your purchases must be from registered shops in the Tax-free network."

Are you saying that even if I get a receipt for the purchase, I could not claim the VAT back as I leave the country because Karnig isn't part of the tax-free network? Or are you just saying that stores in the Tax-free network can sell you the item in the store without charging the VAT?

[sgt10p]

Are you liable for duties when you get home? Do they make a note in your passport?

[No SUBctitute]

Originally Posted by sgt10p

Are you liable for duties when you get home? Do they make a note in your passport?

You declare it on a form, and then customs may or may not ask you to pay duty on the watch...if they even look at or notice the form. If so, it might be a couple hundred bucks on a Tudor.

[majidessa]

Originally Posted by No SUBctitute

Very interesting information. Why would no receipt be provided? Is there some reason they don't want you to collect your VAT refund upon leaving the country?

The Karnig AD website lists the BB58 for 3230 JOD, the equivalent of $4557 USD (its $4000 in the US market)
https://www.karnig.com/watches/TUDOR...8-M79030B-0001

Are you saying that 3230 JOD price at the Karnig AD is higher than the actual Tudor list price in Jordan?

The Jordan VAT refund website says that: "Your purchases must be from registered shops in the Tax-free network."

Are you saying that even if I get a receipt for the purchase, I could not claim the VAT back as I leave the country because Karnig isn't part of the tax-free network? Or are you just saying that stores in the Tax-free network can sell you the item in the store without charging the VAT?

Up to my knowledge, Karnig isn't part of the tax free network. For Tudor watches, the best way to negotiate a better price is to pay cash without invoice as the invoice will include VAT, You might get an additional discount on top of VAT from 5 - 10% depending on model.