Summer is over, and with it comes the return from holidays, often synonymous with fruitful shopping for many of us. Shopping abroad can be particularly appealing for consumers living in Switzerland, thanks to the favorable VAT (Value Added Tax) differential.
Indeed, Switzerland applies a relatively low VAT rate, with a standard rate of 8.1%, which is significantly lower than that of its neighboring countries. Therefore, goods purchased abroad may be exempt from the VAT of the country of origin, but you will still need to pay Swiss VAT upon your return.
It is important to distinguish between two scenarios:
Online Shopping: When ordering online, a purchase made by a Swiss consumer abroad is generally considered a direct export, meaning that the goods should be sold tax-free. It is therefore crucial to check that the total amount of your order is listed without taxes before finalizing your purchase. If the invoice includes foreign VAT, you have the option to dispute it and request a refund. Upon importation, the parcel will automatically go through customs, where clearance fees will be calculated and subsequently charged to the recipient. Swiss VAT will also apply, provided that the amount reaches at least 5 Swiss francs.
Importing Goods: Goods can be imported into Switzerland without fees if their total value does not exceed 300 Swiss francs. Once this limit is exceeded, you must pay Swiss VAT on the total value of the goods. For certain specific products, such as food, alcohol, and tobacco, you must also take into account the quantities imported. If you exceed the set limits, customs duties apply. For example, the quantities allowed without fees are 5 liters per person per day for alcoholic beverages under 18% alcohol, 1 liter for those over 18%, 1 kg of meat, and 250 cigarettes.
When crossing the Swiss border, you are subject to the principle of self-declaration, which requires you to spontaneously declare all goods you are carrying. This applies not only to tobacco and alcohol but also to animals and plants, foodstuffs exceeding the allowed quantities, repairs made to a vehicle, new tires, and even moving belongings. Failing to declare or making an incorrect declaration is considered an offense and is subject to penalties. Depending on the case, this may involve several laws, such as the customs law, the VAT law, or the law on the protection of animal and plant species. These offenses can be prosecuted not only when crossing the border but also retrospectively, several years after the fact. In general, the amount of the fine corresponds to a multiple of the owed fees, and in the case of serious offenses, a financial penalty in the form of a daily fine may be imposed.
It is also possible to self-report if you have illegally imported goods into Switzerland. To do this, you can contact the nearest customs anti-fraud office to your home. Generally, no penalty is imposed if the offense only involves fees and those fees are paid.
In conclusion, whether you made your purchases in-store or online, it is worth following the tax refund procedures closely to maximize your savings. And above all, don't forget to declare your goods when you return to Switzerland. Failing to do so could expose you to a hefty fine, which could significantly cut into the savings you made!
Useful link: QuickZoll app (https://www.bazg.admin.ch/bazg/fr/home/services/services-pour-particuliers/services-private-einfuhr/quickzoll-app.html)
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