Germany likely to keep 50-euro VAT limit for Swiss shoppers until 2028

Swiss residents hopping across the border to the closest German town for cheaper, tax-free shopping may be eagerly waiting to hear when the 50-euro minimum threshold for VAT refunds will be removed. German lawmakers have now pushed to keep the limit in place until the end of 2028, although there’s a chance it could be scrapped sooner.

Bundestag committee votes to keep 50-euro rule until 2028

Since 2020, Swiss shopping tourists heading to Germany must spend at least 50 euros on a single receipt before they can claim back the German VAT when returning to Switzerland. With VAT rates of 19 percent on standard goods and 7 percent on groceries, getting a refund can help shoppers save some money.

Despite earlier indications from customs authorities that the minimum threshold may be removed before the end of 2026, a Bundestag parliamentary committee voted on November 11 to extend the 50-euro limit until December 31, 2028, according to Blick.

The agreement is, according to German CDU lawmaker Felix Schreiner, a “compromise” because the German Finance Ministry had previously proposed raising the limit to 175 euros. The final decision on the extension still faces government approval.

Digital VAT refund app to replace border queues

The plan to scrap the threshold is also tied to a new digital export certificate (der digitale Ausfuhrkassenzettel, or dAKZ) in Germany. An app will allow shoppers to digitally save receipts and receive a VAT refund without having to queue at the border for a physical customs stamp.

Customers open the app and present a barcode to shop cashiers, which will transfer the receipt. On first use, shoppers may have to register and show their ID when crossing back into Switzerland, after which the app will automatically verify the export using GPS. Retailers will issue refunds either via bank transfer or store credit.

The new system has been tested in a pilot programme since June this year, with 25 Lidl supermarkets in Germany, as well as G-Star, Humanic and Sportscheck, all taking part.

The German customs authority confirmed before the committee vote that the trial is being “evaluated and coordinated”, reports Blick, and that, “according to current plans, the transition to regular operation is scheduled for later this year.” If rolled out nationwide before 2028, there’s a chance that the 50-euro limit could be dropped sooner.

Shopping tourism leads to billions in revenue for German shops

The debate surrounding cross-border shopping is contentious, with retailers in Switzerland frequently arguing that they lose money and customers because items are cheaper in Germany. In fact, the 150 Swiss franc duty-free import allowance was cut from 300 francs to 150 francs in 2025, partly in an attempt to reduce cross-border shopping.

Swiss residents, on the other hand, can save money while the cost of living continues to rise. A recent study revealed that shoppers from Switzerland spend 2,5 billion euros annually in southern Baden-Württemberg alone.