Grey dealers buying from AD... tax?

[De light]

Why worry yourself with this? Are you considering being a grey dealer?

[Nairn1980]

Originally Posted by VirgilKane64

And yet the Rolex veterans say it happens all the time. Just trying to get my head around it.

I wouldn’t worry about it

[173rdabn]

I should care WHY???

[Calatrava r]

I still think most watches which wind up on the internet are simply resold or flipped by retail customers. No matter what anyone can do the allure of a quick profit is hard to pass up for a lot people. Look at all the special edition PP SS watches last year which ended up on the secondary market and as I understand those retail buyers were selected by the ADs with the approval of PP. It is what it is. Sales tax is irrelevant given the mark-ups and profit involved.

[cbalster]

Originally Posted by Calatrava r

I still think most watches which wind up on the internet are simply resold or flipped by retail customers. No matter what anyone can do the allure of a quick profit is hard to pass up for a lot people. Look at all the special edition PP SS watches last year which ended up on the secondary market and as I understand those retail buyers were selected by the ADs with the approval of PP. It is what it is. Sales tax is irrelevant given the mark-ups and profit involved.

truth. i was milling about the Patek salon at Tiffany some time ago, and the salesperson who I had gotten to know was telling me he had sold a Tiffany stamped Nautilus to a billionaire recently who listed it on ebay the next day. This was causing him a lot of stress and consternation with Geneva. It is what it is.

[upsidedownbelt]

To everyone who says “who cares”. I am just curious why you click on this thread after reading the title? Is it to just leave your mark saying who cares?

[VirgilKane64]

Originally Posted by RoscoPico

agree

agree

agree

agree


hate to say it, but disagree

Thank you. Knowing what a seller paid for an item he is selling is material information that reflects on his ability to accept any offer. Tell me who doesn't look at what a home seller paid for a house when it comes time to formulate an offer. Nobody. Nobody smart, at least.

[VirgilKane64]

Originally Posted by De light

Why worry yourself with this? Are you considering being a grey dealer?

I consider myself a grey dealer of many things. Watches included. Aren't we all?

[CashGap]

We are missing the obvious:

Grey dealer in USA: Buy from any AD in the USA *outside your own state* = No sales tax. Eh, you may “owe” use tax in your state... compliance is VERY low.

Or buy from a VAT refund country.

So literally, most USA greys can simply avoid between 2 and 10 ADs (those in same state) out of all the ADs on Earth* and pay no sales tax nor leave anything “bad” in the ADs records.

Not complex.

*Admittedly I know little about sales/VAT outside USA/Europe

[Thrasher36]

What matters is how much the consumer is willing to pay. That's it.

[ChipotleBanana]

Originally Posted by shapiroeric

Lol...like they don't know....they could care less...they force the dealers to take watches they don't want so to make up for it the greys get the hot watches and the cold watches....the dealers move all the watches and the greys win big on the hot watches and lose a little on the cold....

This is easily the dumbest thing I have read on this entire platform. There is watch company, actually, there is no company, that would intentionally glorify the secondhand market at the expense of their own brand. Porsche realized that the 911R was an issue, so they created the GT3 Touring. Rolex, Patek, and AP do not embrace the secondhand market. They simply are at capacity and won't sacrifice their core business to appeal to something that is having a moment. Most AD's are not receiving hundreds of SS professional models like you think. These watches are hot, people are aware of that, and unfortunately will take advantage of secondhand prices when possible. I can 100% promise you that most AD's are just selling what they have. Demand is real, watches are popular, less people are traveling and wanting tangible items.

[Alliy]

This doesn't matter to me.

[Pw92676]

I think it is a very valid question OP for the reasons you mentioned.

I don’t think they can legally avoid tax. But I would guess that their is some arrangement made to mitigate the effect.