Switzerland lowers tax limit for purchases in Germany

In the past, shopping tourism was no stranger along the border between Switzerland and southern Germany: a shopping trip across the border was particularly worthwhile for Swiss visitors because of the more attractive prices. The government in Bern now wants to put a stop to this habit. The reason is the growing dissatisfaction that Swiss retailers are showing towards this competitive disadvantage.
For this reason, from next year the tax allowance for purchases across the border will be reduced. Instead of the previous 300 francs, goods worth only 150 francs (approx. 160 euros) can now be imported into Switzerland. As soon as this value is exceeded, VAT of around 8% applies.

The southern German retail sector, for which purchases from Switzerland account for a not insignificant part of sales, could notice the consequences of this decision next year. However, despite the reduction in tax allowances, the attractiveness of German shopping locations remains, which is not least due to the strong Swiss franc.