Switzerland is tightening its rules on cross-border shopping, reducing the value of goods that residents can import tax-free. From January 1, 2025, the limit will drop from 300 Swiss francs to 150 francs (€160). Purchases exceeding this threshold will be subject to Switzerland’s VAT, which is significantly lower than Germany’s at 8.1% compared to 19%.
Cross-border shopping has become a popular activity for Swiss residents, who take advantage of lower prices in Germany and other neighboring countries. Towns such as Weil am Rhein, Konstanz, and Lörrach in southern Germany have adapted to cater to Swiss bargain hunters, drawing billions in spending annually.
However, Swiss politicians argue that this trend reduces local tax revenue and undermines domestic businesses. The new rules aim to retain more value creation within Switzerland while discouraging excessive shopping tourism.
The announcement has sparked varied reactions on both sides of the border. Some Swiss shoppers are unhappy with the changes. "It really bothers me," said one shopper in Konstanz. "With shoes, you have to be careful not to overpay." Others expressed concern over rising prices and tighter limits on their purchases.
In Germany, local businesses are divided on the potential impact. The Hochrhein-Bodensee Chamber of Industry and Commerce (IHK) does not anticipate significant changes to the regional economy but acknowledges that individual businesses may experience a decline in sales. Large retailers like Frischemärkte Baur predict that Swiss customers may adjust by planning their trips more carefully, buying in bulk, or shopping in groups to make the most of their trips.
Shopping tourism is a lucrative business for Germany’s border regions. A study by the Chamber of Commerce revealed that Swiss citizens spend approximately €2.5 billion annually in the districts of Konstanz, Waldshut, and Lörrach alone.
To simplify VAT refunds for Swiss shoppers, Germany plans to launch a pilot app on July 1, 2025, allowing digital export receipts. This initiative will eliminate the need for physical stamps, making the process faster and more convenient. Meanwhile, Switzerland has already introduced its own app for declaring goods and paying customs duties, though it applies a flat VAT rate of 8.1%, even on items like food that would typically incur a lower tax rate of 2.6%. Changes to this system are expected by 2027.
