I'm mean but is this Kosher?

July 10, 2006 3:28 PM

So, a MacBook at about a 17% discount - what could possibly go wrong?

Seriously. I travel almost every week on biz, and only today while at Heathrow headed to a far Eastern European destination with my flight delayed did I happen to visit the Off Duty shops (I know I'm sad, but I'm usually studying MBA crap)

Nothing much appealed to me until I stumbled across a Dixons store and their Apple hardware.

MacBooks at what would appear to be ex-Vat prices. What could possible go wrong? I'm assuming that even though I live in London, Dixons would be obliged to do something should the wonderful little machine be DOA. And Apple would pick up coverage after that. Or does "Duty Free" pricing imply less statuatory rights (I'm American, so please indulge)?

So any "gotchas" I should be aware of? Sometimes as I do day trips to Warsaw or Prague, and would have no problem at all picking up a MacBook at Heathrow and keeping the box close to me until I return to London; security of the device, therefore, isn't an issue.

Thanks for your help and take care!

posted by Mutant to Computers & Internet (15 answers total)

Is it a refurbished unit?
posted by Mr. Six at 3:35 PM on July 10, 2006

I would also point out that European and Asian prices for hardware are remarkably expensive compared with prices in American dollars. The weakness of the dollar has its benefits. You may consider pricing the MacBook with the exchange rate in mind.
posted by Mr. Six at 3:37 PM on July 10, 2006

Is this a "new" unit? Maybe I don't understand - what are 'ex-vat' prices?

If it's new it should carry apple's warranty - if it's not new - well - it won't

Check the serial #'s on apple's website and it'll tell you what the warranty is on it.
posted by jimmy0x52 at 3:39 PM on July 10, 2006

Beware - might be grey market merchandise.

If you see one you want, get the serial number and call Apple and have them verify that you will be covered when you return to the US. You *should* be, but I have heard stories of machines that were purchased overseas having warranty issues.

(FTR, I'm a former AppleCare phone monkey.)
posted by drstein at 3:44 PM on July 10, 2006

VAT is the British sales tax, and is 17.5%. Apple usually price their machines at the dollar price, converted to pounds, add on a bit for luck and then add VAT. So the duty-free price will be roughly the same as the US retail price anyway.

Here's the gotcha: You can only buy them if you're going to an EU country: go anywhere else and you'll pay VAT at customs on your return.
posted by bonaldi at 3:47 PM on July 10, 2006

It won't be grey market, btw, not from Dixons. They're not offering them any cheaper than usual: they're just not adding on the sales tax they usually have to.
posted by bonaldi at 3:48 PM on July 10, 2006

Response by poster: MrSix: Brand new machine - I did take the time to task the clerk.

Also, for the foreseeable future any long-haul travel I do is away from the US. I'm still seeing MacBooks on Apple's UK web store north of one thousand pounds. The same machine at Dixons Duty Free was 849 pounds.

Luriete: I had the same impression - hence my question.

Jimmy: VAT is "value added tax", a tax common in the EU and the UK. These are ex-VAT, or Duty Free as they are sold at Heathrow.

DrStein: thanks, but I live in London. Have for the past ten years, won't be returning to the US anytime soon, if at all. But others have raised the serial number issue - can I call Apple with the serial number to insure it's covered in the EU/UK? If they did indeed grey market it, where would they source their Macs?

Thanks again for your help guys!
posted by Mutant at 3:49 PM on July 10, 2006

Best answer: It should be fine - VAT is Value Added Tax. I've bought stuff - cameras etc - on an outward journey and brought it back through HM Customs no problem. Just make sure you discard the packaging and other obvious signs.

But... it is true that one bought in the US will be better value.
posted by A189Nut at 3:49 PM on July 10, 2006

Stuff in Heathrow Dixons (aren't they all Currys.digital by now?) will be completely legit -- you don't need to worry at all, seriously. It's just like any other Dixons, only without the VAT.

Aside: it's pretty annoying how Americans seem to feel the need to answer this question without even knowing what Dixons or VAT is.
posted by reklaw at 4:15 PM on July 10, 2006

"It should be fine - VAT is Value Added Tax. I've bought stuff - cameras etc - on an outward journey and brought it back through HM Customs no problem. Just make sure you discard the packaging and other obvious signs."

Be aware though, that you are required by law to declare (i.e. tell Customs about by leaving the baggage reclaim area via the 'Red' route) and pay tax on up to "£145 worth of all other goods including gifts and souvenirs".

The HM Customs page also says:
"If you are bringing back any duty-free or tax-free goods you bought when you left the UK, these count as part of your allowance."

So feel free to buy a cheap Mac in Duty Free, but be aware that taking it back through Customs without declaring it and paying VAT is illegal (assuming it costs more than £145).
posted by EndsOfInvention at 5:03 PM on July 10, 2006

Best answer: Mutant: Your profile says "I also teach Econometrics one night a week at a local University"

If this is still the case, you can buy the laptop directly from Apple's Higher Education website: http://apple.procureweb.ac.uk (you'll only be able to see that page from a British university system)

The education discount tends to be 17% if you buy it as an individual, or more if you buy it as an institutional purchase. Buying it directly lets you customise the system (useful for upgrading the hd, less so for ram) and avoids Dixon's who, like most highstreet electrical retailers are a pain to deal with.

If you do buy the system from Dixons, check the Apple website before doing so. Dixons often sell systems that are pretty out of date. When I was in Luton airport last month they were still selling Powerbooks rather than Macbooks.
posted by Olli at 5:06 PM on July 10, 2006

aren't they all Currys.digital by now?

The airport ones aren't changing. No idea why.

can I call Apple with the serial number to insure it's covered in the EU/UK? If they did indeed grey market it, where would they source their Macs?

Apple warranties apply worldwide for portables, so you should have no trouble getting it fixed if you have problems.
posted by cillit bang at 5:16 PM on July 10, 2006

EndsOfInvention, the £145 limit is outwith the EU. There is no limit on electronics within the EU, so if the flight is wholly within the EU, there will be no VAT to pay on return.
posted by bonaldi at 5:20 PM on July 10, 2006

bonaldi: "EndsOfInvention, the £145 limit is outwith the EU. There is no limit on electronics within the EU, so if the flight is wholly within the EU, there will be no VAT to pay on return."

Yes, but the Customs "travel within the EU" page says:
"If you bring in goods on which tax has been paid in an EU country, you do not have to pay any tax or duty on them in the UK."
So if he's buying it Duty Free in at the UK airport (and thus has not paid any tax or duty on it), does he still have to declare it? I can't find the answer to that on their website.
posted by EndsOfInvention at 5:30 PM on July 10, 2006

Many 'duty free' shops in airports offer duty free prices to people travelling within the EU, although in effect you are still paying the duty (VAT). In effect all the shop does is discount the price to the equivalent of a duty free price, but your receipt should (I think) still show VAT.
posted by MrC at 9:13 PM on July 10, 2006