The economic commissions in both chambers of the Swiss parliament have voted to tighten restrictions around cross-border shopping. So-called shopping tourism between Switzerland and its neighbours is a billion-franc industry and has been blamed for creating a financial crisis at local stores and retailers.

Rules for cross-border shopping for residents of Switzerland

Currently, those who live in Switzerland are able to travel to neighbouring countries to shop for food, clothes and other items. They can then take a certain amount of these goods back to Switzerland without paying any import duties or value-added tax. 

Shoppers from Switzerland can import goods free of charge, so long as their total value does not exceed 300 francs. There are also restrictions on a number of specific goods, like beverages with an alcohol content of less than 18 percent (5 litres per person per day), drinks with more than 18 percent alcohol (1 litre per person per day), meat (1 kilogram per person per day) and cigarettes (250 cigarettes per person per day).

If the value of the goods exceeds 300 francs, you must declare the purchases at the Swiss border or via the QuickZoll app, and pay Swiss VAT and any duties that may apply.

Why do people living in Switzerland shop in Germany and France?

As the cost of living is much cheaper in Germany, France and Italy, many people living in Switzerland hop across the border to benefit from the lower prices. What’s more, the recent spike in the value of the Swiss franc against the euro has made shopping tourism all the more lucrative.

However, the practice leaves local stores and supermarkets in Switzerland out of pocket, especially in cantons and cities near the border. According to the Swiss Retail Federation, in 2023 people in Switzerland spent more than 8,5 billion francs a year in Germany and France on cross-border shopping.

In 2024, they predicted “a loss of Swiss retail revenue of more than 10 billion francs due to shopping tourism,” the organisation wrote in a statement. They added that retail sales in Switzerland are expected to stagnate or even fall this year, mainly because of cross-border shopping and competition from retailers on the internet.

Parliament moves to lower VAT-free limit on cross-border shopping

Therefore, since 2019 the Swiss government has been debating proposals to lower the tax-free limit on shopping tourism. Last week, the National Council’s Economic Affairs and Fees Committee approved a plan to lower the limit to 150 francs. On August 28, the same committee in the Council of States went further, ordering that the limit be lowered to 100 francs per person per day.

In a statement, the committee wrote that the lower limit would dissuade shoppers from travelling abroad to do their day-to-day shopping, and “repatriate added value to Switzerland”. With the Federal Council having proposed a similar change at the end of last year, a version of the plan will likely be made into law.

However, there are concerns that the change may prove ineffective. When the limit reduction was last proposed in 2023, the Tages-Anzeiger noted that many shoppers were simply preparing to make more trips across the border to comply with the lower limit. With current customs restrictions enforced by random spot checks from the police and customs officials, there are also concerns that many shoppers will simply ignore the rule until they are caught.

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