Categories: Market

Neighboring countries lower junk limit: What Swiss shopping tourists need to know now

class = “sc-cffd1e67-0 iQNQmc”>

1/5
Italy attracts Swiss shopping tourists by lowering de minimis limit.
Ulrich Rotzingerhead of economy

The topic of shopping tourism is a hot topic. Already customs and return formalities. If Swiss retailers have their way, it will be much easier for the Swiss to import goods into the Alpine country at very low prices. Now Italy is making shopping in Euroland more attractive. Blick shows why the tides are rising again.

What happened on Thursday?

On Thursday, Italy lowered the threshold for VAT refunds in Italy. The so-called junk limit is now 70 euros. It was previously 155 euros. This means that Swiss shopping tourists, the majority of whom are the Ticino population, will reclaim Italian VAT on a total purchase of just 70 euros when they return to Switzerland.

What VAT rates apply?

There are various VAT rates in Italy: Normally it is 22 percent. The reduced VAT rate is 10 percent (certain food and medicines, theater tickets, etc.). A highly reduced rate of 4 percent is applied to basic foodstuffs and agricultural products. VAT rates on child care products such as feminine hygiene products and baby diapers were increased from 5 percent to 10 percent at the beginning of this year.

Why are Swiss retailers so angry?

The Swiss Retail Federation calls for “Switzerland to give up.” The umbrella association of Swiss store operators (excluding large distributors) considers it a nuisance that “Italy is attracting shoppers with easier VAT refunds”. Local businesses are missing out on selling what tourists leave behind in Italian cash registers. According to retailers, the federal government loses “about 10 billion francs a year from the VAT tax base.” The Ticino Retailers Association sounds the alarm: “The constant erosion of sales figures” seriously jeopardizes the survival of many companies and therefore the preservation of employment.

What do Swiss retailers demand?

As the small limit is halved, the incentive to shop in Italy increases. This is indisputable. The Swiss Retail Federation is calling for an end to the “double advantage” of foreign buyers over domestic consumers. He sees only one solution: lowering the value-neutral limit from the current 300 francs to 50 francs.

What does a reduction in the value-neutral limit mean for shoppers?

Anyone living in Switzerland and shopping across the border can currently import products worth 300 francs duty-free. Therefore, tourists who shop save a large amount of money. The federal government is currently examining measures to curb shopping tourism. In the future, the Swiss will be able to import duty-free goods worth only 150 francs instead of 300 francs.

Advert

What trivial limits apply in other neighboring countries?

Italy aligns with Switzerland’s other neighboring countries, which have long had lower thresholds for VAT refunds. Tourists who shop in Germany only get 50 euros back when they return. In Austria the threshold is 75 euros. In France, this figure is even higher at 175 euros.

More about shopping tourism
Shopping tourists beware
This is how foreign exchange experts predict the franc in 2024
Will it sound the death knell for our money?
What you need to know about Twint’s new features
Shopping tourists beware
Germany increases VAT – what you need to know
Federal government is tightening the tax screw
This is what Keller-Sutter’s plan means for shopping tourists
Customs will soon be announced from 150 francs
The Federal Council wants shoppers to get their money’s worth

Source :Blick

Share
Published by
Tim

Recent Posts

Terror suspect Chechen ‘hanged himself’ in Russian custody Egyptian President al-Sisi has been sworn in for a third term

On the same day of the terrorist attack on the Krokus City Hall in Moscow,…

1 year ago

Locals demand tourist tax for Tenerife: “Like a cancer consuming the island”

class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…

1 year ago

Agreement reached: this is how much Tuchel will receive for his departure from Bayern

class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…

1 year ago

Worst earthquake in 25 years in Taiwan +++ Number of deaths increased Is Russia running out of tanks? Now ‘Chinese coffins’ are used

At least seven people have been killed and 57 injured in severe earthquakes in the…

1 year ago

Now the moon should also have its own time (and its own clocks). These 11 photos and videos show just how intense the Taiwan earthquake was

The American space agency NASA would establish a uniform lunar time on behalf of the…

1 year ago

This is how the Swiss experienced the earthquake in Taiwan: “I saw a crack in the wall”

class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…

1 year ago