Categories: Market

Why Fewer Shopping Tourists Spend Money Abroad?

“Only 27 parking spaces left!” on the electronic display at the Konstanz (D) border crossing. contains the phrase. The six large car parks and houses in the Swiss shopping tourist’s stronghold were really packed this Saturday afternoon. Crowds pushed downtown, Lago mall was in Swiss hands.

And in German local media such as the “Badische Zeitung”, traders predict that Switzerland will come to Constance, Weil am Rhein, Metzingen and Co. as much as before. But apparently this is just a snapshot and appearances are deceiving.

st. According to a new long-term study by the University of St. Gallen, Swiss retail business will lose “only” CHF 8.43 billion this year through shopping tourism. It was still 9 billion in 2017, over 10 billion francs have been overhauled in the years before that.

Shopping tourists are afraid to meet acquaintances

According to the study, purchases in neighboring countries such as Vorarlberg in Austria or Baden-Württemberg in Germany are falling. st. Retail expert Thomas Rudolph of the University of St. Gallen’s Retail Management Research Center says Swiss people spend less on average foreign purchases in stores and go there less. “Good goods for less money” is still the main reason for shopping tourism.

The reasons for the decline are clear: record high inflation in the eurozone is a deterrent and prompts rethinking. “Many are increasingly shopping in Switzerland,” the study says. The minimum limit of 50 francs in force since 2020 is also a deterrent. German VAT can only be refunded at a higher amount per purchase. The study also touches on other barriers: waiting times at borders, overcrowded trains, or the risk of meeting friends and acquaintances. Is Switzerland more ashamed of its euro purchases today than it was a few years ago? The study does not provide an answer to this question.

What is an export license?

You can shop tax-free in Switzerland, Germany. You get a VAT refund for every job in a shop in a neighboring country.

You pay the full price in the shop and receive an export license in return. If this is later stamped by customs, the sales tax can be recovered with the export certificate.

In Germany, a lower limit of 50 euros per purchase applies since 1 January 2020. This means that Swiss people will only get VAT back when the purchase is more than 50 Euros.

You can shop tax-free in Switzerland, Germany. You get a VAT refund for every job in a shop in a neighboring country.

You pay the full price in the shop and receive an export license in return. If this is later stamped by customs, the sales tax can be recovered with the export certificate.

In Germany, a lower limit of 50 euros per purchase applies since 1 January 2020. This means that Swiss people will only get VAT back when the purchase is more than 50 Euros.

Interesting in this context: In a five-year comparison, the number of online shoppers from abroad is now increasing. Online shopping tourism, calculated in Swiss Francs, increased by 20 percent. trend is increasing.

Ulrich Rotzinger
Source :Blick

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