The federal government is tightening the tax screw – that’s what Keller-Sutter’s plan means for shopping tourists: how do shopping tourists avoid VAT liability?

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The federal government wants to tax purchases abroad more heavily if they are imported. The value-free limit will be halved from 300 to 150 francs. The Tamedia newspapers report this. In the next step, the Federal Council will launch a consultation, i.e. obtain the opinion of the parties and important associations.

Anyone who buys abroad today can reclaim local VAT from the so-called de minimis limit of 50 euros. When imported into Switzerland, purchases with a total value of 300 francs or more are only subject to Swiss VAT. Even if the foreign VAT is not refunded.

A study by the University of St. Gallen estimated last year that Swiss people have spent about 8.5 billion francs abroad. Swiss retailers in border regions in particular are experiencing a competitive disadvantage due to shopping tourism. The cantons of St. Gallen and Thurgau have therefore submitted a business initiative calling for the abolition of the value-free limit. Parliament also approved a motion from the Finance Commission of the National Council, which aims to improve “fiscal justice in border traffic”.

Karin Keller-Sutter now wants to take these requirements into account when reducing. The University of St. Gallen also calculated how much shopping tourism would decrease if the value-free limit was limited to 50 francs – and it came to 33 percent. It is not clear how much impact a reduction to 150 francs would have.

Swiss retailers are happy with the reduction. Sara Stalder of the Consumer Protection Foundation, on the other hand, speaks to Tamedia about “fighting symptoms”. It yields little and, in the worst case, leads to more traffic because people simply shop abroad more often.

The value-free limit applies to all goods intended for private use or as a gift. The decisive factor is the price on the receipt, after deduction of foreign VAT. Prices in foreign currencies are converted into Swiss francs. The total value of all goods applies; Individual items with a value above 300 francs are always subject to VAT.

Shipments from abroad are subject to VAT from 65 francs. For books and other goods with a reduced VAT rate of 2.5 percent, the tax only applies from 200 francs.

Purchases can be registered using the federal government’s ‘Quickzoll’ app. The app then checks whether you have to pay VAT and pays the amount directly via your credit card. However, the app applies the VAT of 7.7 percent to all goods – including goods such as food or medicine, which actually apply the reduced tax rate of 2.5 percent.

The value exemption limit applies per day and per person. You can go abroad and buy less each time. Or go shopping with the whole family or friends.

After consultation, the Federal Council submits the proposal to parliament. The professional initiatives of the cantons of St. Gallen and Thurgau are currently with the Commission for Economic Affairs and Taxation of the Council of States. She does not want to take any action for the time being, but prefers to wait for the consultation of the Federal Council. It may take some time before the new rules are actually implemented.

Source:Blick