$$ {\textbf{Step -1: Make a Linear Equation}} $$
$$ {\text{Given vat = 8 % }} $$
$$ {\text{Let price of the watch = x}} $$
$$ {\text{and the buying price is 2700}} $$
$$ {\text{So, }}x + x \times \dfrac{8}{{100}} = 2700 $$
$$ {\textbf{Step -2: Find the value of x}} $$
$$ \dfrac{{108x}}{{100}} = 2700 $$
$$ \Rightarrow 1.08x = 2700 $$
$$ \Rightarrow x = 2500 $$
$$ {\text{So, before vat the price was 2500 }} $$
$$ {\textbf{ Hence, before VAT the price was 2500}}{\text{.}} $$