KONSTANZ (dpa-AFX) – Many people from Switzerland drive across the border to the south of Germany to shop cheaper. In order to curb shopping tourism, Switzerland is now acting and halving the value of purchases that are allowed to come into the country tax-free.
From January 1st, only goods worth 150 francs (around 160 euros) can be brought tax-free – previously the exemption limit was 300 francs. If the value is higher, VAT must be paid in Switzerland. However, the standard rate there is significantly lower than in Germany: 8.1 instead of 19 percent.
The change is triggering different reactions in the German border region. She expects that the reduction in the exemption limit will not have a significant impact on the purchasing behavior of the Swiss, says the Parliamentary State Secretary, who comes from Waldshut Federal Ministry of the InteriorRita Schwarzelühr-Sutter, the German Press Agency.
The Hochrhein-Bodensee Chamber of Commerce and Industry does not see any threat to the regional economy – although there could be negative effects in individual cases.
The regional retailer Frischemarkt Baur expects the shopping behavior of the Swiss in the Lake Constance border town of Konstanz to change and sales could also fall: “Swiss customers will plan their purchases better, buy larger quantities at once and probably come to shop in groups.” says managing director Sabine Seibl./cb/DP/zb