Watches In Austria: Cheaper Or Expensive?

Austria is known for its sausages, composers, and intellectual geniuses. But did you know it's also home to some brilliant horologists? While there are only a handful of Austrian watch brands, they can hold their own against other mainstream brands. So, are watches cheaper in Austria? The answer depends on several factors, including the country's VAT, taxes, and currency strength relative to your own.

VAT refunds for tourists

If you're looking to buy a watch in Austria, you may be wondering if you can get a better deal than at home. While there are no clear sources stating that watches are cheaper in Austria, you may be able to save some money through VAT refunds. Here's a guide to VAT refunds for tourists in Austria:

Who is Eligible for VAT Refunds?

Non-EU residents who purchase goods in Austria may be eligible to request a refund of the value-added tax (VAT). To be eligible, you must meet the following requirements:

• The total purchase price per bill must exceed 75 EUR.
• Your passport must indicate a domicile/residence outside the European Union (due to Brexit, the UK is considered a non-EU country for VAT purposes).
• You do not have a residence permit for Austria or any other EU member state.
• You must export the goods within three months of purchase.
• You must show the goods to customs officials and obtain a stamp before leaving the EU.

How to Claim Your VAT Refund:

• When making your purchase, show your passport to the Austrian vendor to prove that you are a foreign national. Don't be concerned if the vendor makes a copy of your passport, as this is a standard procedure.
• The vendor will provide you with a completed Form U34 (export certificate), which includes a confirmation of your purchase. Make sure that your personal information on the form matches your passport details.
• If you are leaving Austria by car or train, you will need to show Form U34, the purchased goods, and the invoice when you reach the external border of the EU. This can be in countries such as Bulgaria, Hungary, or Poland. Present these to the customs officer or an authorized company to obtain the necessary stamp.
• If you are leaving by plane, you must get the form stamped by a customs officer at the airport before checking in. At the Vienna International Airport, this process is handled by authorized companies digitally.
• Send the stamped export certificate to the supplier within six months to receive your VAT refund. In some cases, you may receive the refund directly at the border, but it may be subject to a handling fee.

Please note that the above information is a guide, and you should always refer to the official sources for the most up-to-date and accurate information.

Direct-from-manufacturer prices

The price of a watch can be influenced by the number of middlemen involved in the supply chain. Buying directly from the manufacturer may mean there are fewer middlemen, which could potentially lower the cost.

Jacques Lemans, for example, is a family-owned Austrian watch brand that designs, manufactures, markets, and sells its watches in-house. This business model allows Jacques Lemans to offer high-quality watches at affordable prices. Their timepieces are sold in over 120 countries, and they have brand stores in Austria.

Another example is Carl Suchy & Söhne, a luxury watch brand based in Vienna, Austria. Their watches are handcrafted in Austria and Switzerland, and they have an international retail network.

It's worth noting that the price of a watch is influenced by various factors, including VAT, taxes, and currency exchange rates. These factors can vary from country to country, so it's important to consider the overall cost when purchasing a watch directly from a manufacturer.

Additionally, limited editions and exclusive models offered by manufacturers can also impact the price. For instance, Switzerland occasionally offers watch models that aren't available elsewhere, which may attract collectors willing to pay a premium.

In summary, buying directly from the manufacturer can potentially offer cost savings by reducing the number of middlemen involved. However, it's important to consider other factors such as VAT, taxes, currency exchange rates, and the availability of exclusive models when determining the final price of a watch.

Currency exchange rates

If you are travelling to Austria, it is advisable to research and compare exchange rates offered by different financial institutions and online brokers. This will help you obtain a favourable rate and maximise the value of your money. Additionally, consider purchasing Euros in your home country before arriving in Austria, as exchange rates at airports or foreign exchange bureaus may not be as advantageous.

It is also important to be mindful of the potential fees associated with international transactions. Banks often charge foreign exchange transaction fees for using your debit or credit card abroad. These fees can quickly add up and impact the overall affordability of your watch purchase. Therefore, consulting with your bank beforehand and understanding their fee structure is essential.

Another factor to consider is the potential for VAT refunds. As a tourist, you may be eligible to claim back the Value-Added Tax (VAT) on purchases made in Austria when you leave the country. This can further reduce the cost of your watch and enhance the savings you may gain from favourable currency exchange rates.

By staying informed about currency exchange rates and being strategic about when and where you exchange your money, you can optimise your purchasing power and potentially acquire a watch at a more competitive price in Austria.

International warranties

When buying a watch, it is important to consider the warranty offered by the manufacturer. A warranty ensures that you are protected if there are any defects or malfunctions with your watch. International warranties are especially useful if you are buying a watch abroad, as they provide coverage regardless of the country of purchase.

TAG Heuer, for example, offers an international limited warranty that covers any malfunction of your watch resulting from a manufacturing defect for 24 months from the date of purchase. This warranty can be honoured worldwide, in any TAG Heuer boutique, authorised retailer, or service centre. Additionally, TAG Heuer offers an international service warranty that covers all interventions and components for 24 months from the repair date.

Geneva Watch Group also offers an international warranty on its precision timepieces. Their 2-year limited warranty covers defects in material or workmanship and can be serviced at any of their international service centres during the first 2 years of ownership. However, it is important to note that a copy of the receipt or a dealer stamp is required for proof of purchase.

When purchasing a watch, it is always a good idea to carefully review the warranty terms and conditions to understand what is covered and what is not. Watch warranties typically cover manufacturing defects but do not cover damage caused by accidents, misuse, or regular servicing costs. Additionally, some companies offer extended warranties or "extensions" that can provide additional peace of mind.

For example, Rolex and Omega have increased their standard warranties to five years, while some Richemont brands like Cartier, IWC, Panerai, and Jaeger-LeCoultre offer warranty "extensions" that can amount to a total of eight years. These extended warranties reflect the manufacturer's confidence in the quality of their products and can add value to the consumer's purchasing decision.

Limited editions and exclusives

Some Austrian watch brands offer limited editions and exclusives, which may be an attractive prospect for collectors.

Carl Suchy & Söhne

Carl Suchy & Söhne is a luxury watch brand based in Vienna, Austria, with a history dating back to 1822. The brand offers exclusive, limited-edition luxury watches, including the Waltz N°1, a minimalist design with an automatic movement available in five colour combinations, priced at €7850. They also offer the Waltz N°1 Skeleton, a successful declination of the classic Waltz Nº1, produced in a strictly limited special series of five watches a year. Their timepieces are available in selected boutiques in Austria, Switzerland, France, Kuwait, Hong Kong, and Japan, as well as online.

Normalzeit

Normalzeit is a watch brand created by watch designer Fredi Brodmann and the Lichterloh Gallery, inspired by the iconic Vienna City Cube Clock. They offer two collections: the NZ Limited Edition, equipped with sapphire crystal and an automatic movement from Seiko, priced at $500-$695; and the NZ Red 36 Open Edition.

Frequently asked questions