As the prices of goods and services in neighboring countries are often lower than those in Switzerland, many Swiss residents shop abroad. Until the end of this year, each person who shops across the border is allowed to import goods worth up to CHF 300 per person per day, without paying taxes or customs duty. Additionally, you can also claim the Value Added Tax (VAT) back from the country of purchase on any receipt that totals more than the “minimum limit,” which varies from country to country (€ 50 in Germany, € 70 in Italy, € 75 in Austria, and € 100 in France). To enjoy this benefit, hundreds of thousands of people per year have their export certificate (Ausfuhrbescheinigung) stamped by German customs officers at the German border alone. So anyone who shops in Germany and spends between € 50 and CHF 300 can avoid paying any VAT or customs duties in either Germany or Switzerland. This creates an even greater disadvantage for Swiss retailers as their Swiss customers cannot avoid paying VAT. Altogether, these conditions contribute to Swiss residents spending an estimated CHF 10 billion abroad every year, which has a substantial impact on the Swiss economy.

In an effort to curb this so-called “shopping tourism,” the Swiss Federal Finance Department sent a proposal out for consultation in 2023, which is now being implemented unchanged. It was widely welcomed, with the vast majority of parties voting in favor of it – from the Greens to the SVP (SP remains against this lowered value-free limit). They want to use it to strengthen the competitiveness of the Swiss retail trade, reduce cross-border traffic, and increase the federal government’s tax revenue.

As a result of this new law, starting on January 1, 2025, Switzerland’s tax-free import limit will be reduced from CHF 300 to CHF 150 per person, per day! This year’s holiday season will be the last time that people will be able to shop abroad under the old conditions.

How does this work at the border?

In order to claim the tax back on your purchases, you must stop by the Zollamt (customs office) at the border of the country you are leaving (before you re-enter Switzerland) and get your receipts stamped. On your next visit to that country, you need to return with the stamped Ausfuhrbescheinigung to the retailer where you made the purchase, and they will refund the VAT tax to you.

For the Swiss part of the transaction, if the goods you purchased exceed the allowable amount, you will be charged duty on the entire amount that you are importing into Switzerland, not just the amount that exceeds CHF 150. This duty-free amount of CHF 150 is allowable once per day and person, including children. For example, if you are travelling with two other people in a car, the total allowable value of imported goods is CHF 450. Be aware, however, that you cannot bring in one larger item worth CHF 450 and split the allowance over the three people; the items need to be separate or divisible. For example, dismantled furniture, dish/cutlery sets, or summer tires for your car are not considered divisible, even if they come in separate boxes!

You can either pay the duty at the Swiss customs counter at the border, or avoid this stop by using the “QuickZoll” app. As a private individual, QuickZoll allows to you independently declare goods for importation for your own use or as a gift and pay any applicable taxes and duties directly by credit card on the app. In addition, the Swiss Customs app summarizes all the important facts about entry to Switzerland briefly and concisely. To learn more and download the app, visit https://www.bazg.admin.ch/bazg/en/home/services/services-individuals/services-private-einfuhr/quickzoll-app.html.

Do the new rules also apply to online purchases abroad?

If the goods cross the border by post, the value-free limit does not apply. However, “for administrative reasons” customs does not levy small amounts of tax—specifically, tax amounts under CHF 5. This means that with a VAT rate of 8.1 percent, you will need to make a purchase of over CHF 62 before VAT will be levied. For books with a reduced tax rate of 2.6 percent, a VAT-free limit of CHF 193 applies. If the value of a package (including shipping costs) exceeds these amounts, you will have to pay a fee from the carrier for customs clearance in addition to the actual VAT. (For more information, also see our post https://www.basellife.com/pay-import-costs-online-for-postal-items/.)

How will this affect the borders?

At this point, the impact of these changes is only speculation. The goal of the new VAT-free limit was to discourage Swiss residents from shopping abroad. The fear, however, is that cross-border shoppers will make more frequents trips, with less merchandise, increasing cross-border traffic. Additionally, there may be more traffic obstructions as Swiss customs carry out more searches at the border crossings.

Germany, on the other hand, is worried about losing Swiss customers and is planning to simplify shopping across the border by introducing digital export certificates, which will put an end to the annoying stamping of receipts and traffic jams at customs. In addition, Germany plans to do away with the € 50 minimum on every purchase required for the Swiss shopping tourists to claim the German VAT refund.

Even with all these changes, note that you are still restricted to a maximum allowance for certain goods that you can import into Switzerland without paying dues, regardless of their monetary value. These goods include, for example, alcohol, tobacco, and meat. For more information on importation into Switzerland, visit https://www.ezv.admin.ch/ezv/en/home/information-individuals/travel-and-purchases–allowances-and-duty-free-limit/importation-into-switzerland.html.

Advertisement