Switzerland Halves Tax-Free Shopping Limit for Cross-Border Shoppers

Starting January 1, Swiss residents can only bring goods worth up to 150 francs tax-free from abroad, down from the previous limit of 300 francs.

The Swiss government has reduced the tax-free shopping threshold to curb cross-border shopping and retain economic activity within the country.
Purchases exceeding 150 francs will now be subject to Switzerland's 8.1% VAT, which remains lower than Germany's 19% VAT rate.
In response, Swiss shoppers are expected to adjust their habits, planning larger purchases and possibly shopping in groups to maximize trips.
The new policy has sparked mixed reactions in German border regions, with local businesses predicting limited overall impact but potential revenue losses in specific cases.
Efforts to streamline VAT refund processes for Swiss shoppers include plans for a digital export receipt system in Germany starting July 2025.