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Swiss retailers can breathe a sigh of relief: the federal government plans to tighten import taxes for purchases abroad. The value-free limit should be halved from the previous 300 to 150 francs, as the “Tages-Anzeiger” reports. The newspaper relies on various sources familiar with the case.
According to this data, Finance Minister Karin Keller-Sutter (59) wants to collect Swiss VAT from just 150 francs. This move is seen as a response to several initiatives taken by Parliament. They call for an end to the “subsidization of shopping tourism”.
The current situation is in favor of shopping tourists
Initially, the government saw no need for action. Only: the increasing problems in the retail sector and the demands of Parliament have led to a reconsideration, the report continues. Swiss retailers complained of unfair competition due to the different tax systems between Switzerland and neighboring countries, especially in border regions such as the cantons of St. Gallen and Thurgau.
One thing is clear: the current situation is significantly stimulating shopping tourism. Currently, purchases abroad only have to be taxed with a total value of 300 francs or more. This gives shopping tourists a clear competitive advantage because they can reclaim local VAT. This refund is possible from a trivial limit of 50 euros. In Austria this limit is 75 euros, in France 175 euros and in Italy 155 euros.
Swiss retailers are suing
Swiss retailers not only face a competitive disadvantage, but also customers who can shop abroad tax-free. This has led to Swiss citizens spending more than eight billion francs abroad every year.
However, the planned halving of the value-free limit to 150 francs will likely pose some challenges for customs, as the “Tages-Anzeiger” writes. There are fears that the new regulations could lead to traffic jams at the borders.
To alleviate this, the government wants to work with the Quickzoll app, with which VAT and customs duties can be settled without having to involve civil servants. The app makes it possible to register purchases before crossing the border and pay the amount via credit card.
approval and criticism
Despite these measures, there are tricks to continue shopping tax-free. One option is to travel abroad more often, but with smaller amounts. The value exemption limit can only be claimed once per day and person. Another strategy: Shop as a family or group, since the value-free limit is per person.
The proposed change has attracted both approval and criticism. Swiss retailers are happy with the tightening, consumer protection organizations speak of “fighting symptoms”. They fear that lowering the value-free limit could lead to more travel abroad.
The final decision is still pending and it remains to be seen how negotiations will develop. (oco)
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
