While Switzerland continues to tighten restrictions around shopping tourism, officials in Germany are doing what they can to coax more people across the border. In the future, residents of the alpine nation will be able to deduct German value-added tax (VAT) on all their purchases, meaning goods worth up to 150 francs will soon be completely VAT-free.
Under the current system, people in Switzerland who want their German shop to be completely VAT-free have to make purchases worth more than 50 euros, but less than the limit after which Swiss VAT is charged (150 francs per person as of 2025). Those who want their German VAT refunded can do so at customs at the border via an export certificate.
Those who make purchases above the 150-franc limit can still claim German VAT back but will have to pay Swiss VAT instead - 8,1 percent on most goods, alongside a 2,6 percent reduced rate for certain items like foodstuffs, water, and books. However, with Germany charging a VAT rate of between 7 and 19 percent, the system is lucrative either way.
However, the process of physically handing in a form to have it stamped at customs has led to long waits and traffic jams at the border. Because of the bureaucratic hassle, Germany also imposed a minimum limit on VAT claims of 50 euros. Now, however, this system will be changed.
The German General Customs Directorate confirmed that in future, residents of Switzerland who want to claim their VAT back will be able to do so via an app on their mobile phone. Similar to the Swiss QuickZoll app, users will be able to fill in and get their German export certificates and refunds approved digitally before passing through the border, dramatically reducing waiting times.
"The introduction of the digital export certificate is a simpler and more convenient process for Swiss customers who shop in Germany," SPD member of the Bundestag, Rita Schwarzelühr-Sutter told Blick.
The app will also allow German authorities to scrap the 50-euro minimum limit, meaning all purchases between zero and 150 francs will be made VAT-free. The app will be tested from July 2025, with a final rollout planned for mid-2026.
In words that will be familiar to anyone who knows of Germany’s penchant for paper processes, CDU Bundestag member Felix Schreiner said "it is remarkable that a digital solution is not yet a given in 2024." He explained that lawmakers have spent years trying to convince Berlin to upgrade the system.
Schreiner added that lifting the 50-euro limit will lead to a boom in cross-border shopping, despite attempts by the Swiss government to curb the practice.
Since the start of the year, the government has moved to restrict cross-border shopping between Switzerland and its neighbours. From January 1, 2025, the Federal Council will halve the VAT-free limit on goods brought in from neighbouring nations to 150 francs per person.
Nevertheless, data from the Retail Federation predicts shopping tourism will cost Swiss supermarkets and other shops 10 billion francs in lost revenue in 2024. Despite higher inflation, the strength of the franc and lower prices means shopping in Germany remains significantly cheaper than in Switzerland.
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