Customs clearance starts at 150 instead of 300 francs – shopping tourism could become more expensive. Mammut expands to South Korea

The federal government wants to halve the so-called value-free limit from 300 francs to 150 francs. In other words, Swiss VAT is added to prices from just 150 francs. This is what Finance Minister Karin-Keller Sutter is demanding, as several sources have confirmed to the Tagesanzeiger.

Ueli Maurer, Karin Keller-Sutter’s predecessor, described this move as a “mission impossible” during his time in office. Lowering the value-free limit would lead to miles of customs traffic jams and disproportionate efforts.

Despite Maurer’s warnings, things started moving two years ago: the National Council and the Council of States approved several binding proposals calling for an “end to subsidizing shopping tourism.”

Lucrative shopping trip

So far, a day of shopping across the border is certainly worthwhile: anyone who goes shopping abroad can reclaim local VAT from customs with an export certificate. This is possible from a purchase value of 50 euros.

Because purchases of more than 300 francs are only taxed upon import into Switzerland, this means that purchases between 50 and 300 euros remain completely tax-free. A lucrative business that has long been a thorn in the side of local retailers, especially in the border regions.

Although the cantons of St. Gallen and Thurgau had called for the complete abolition of the value-free limit, Swiss retailers see the halving as a step in the right direction. As Dagmar Jenni, director of the Swiss Retail Federation, told the Tagesanzeiger:

But the value-free limit of 150 francs is still too high for her. Your goal is an exemption limit of 50 francs.

More traffic?

But with a few tips and tricks, larger purchases are still possible: for example, by dragging the whole family to the supermarket. The value-free limit applies per capita. So if you go shopping with four people, you can buy up to 1,200 francs tax-free.

If you go shopping alone but still want to shop with the same volume, you have to cross the border several times. The value exemption limit only applies per capita and per day. So if you go shopping abroad twice a week instead of once, you will still save the same amount of tax.

According to the Tagesanzeiger, this is exactly what Sara Stalder of the Consumer Protection Foundation warned about. The proposal to halve the value-free limit is purely about ‘fighting symptoms’, although the step could lead to even more foreign travel.

But nothing is certain yet. The Federal Council will soon start a corresponding consultation. (saw)