Consultation opens on lowering the tax-free limit in tourist traffic

Bern, 30.11.2023 - Parliament has adopted motion 19.3975 "Improving fair taxation in the flow of goods in local border traffic". This parliamentary mandate is to be implemented by lowering the tax-free limit. According to the motion, goods in tourist traffic should only be exempt from import tax (VAT) up to a total value of CHF 150 per person. The current tax-free limit is CHF 300 per person. The consultation will last until 15 March 2024.

In autumn 2021, Parliament adopted motion 19.3975 "Improving fair taxation in the flow of goods in local border traffic" submitted by the Finance Committee of the National Council, and approved the cantonal initiatives 18.300 "No subsidies for shopping tourism" of the canton of St Gallen and 18.316 "Elimination of the tax-free limit for shopping tourism" of the canton of Thurgau. The initiatives have the common goal of combating shopping tourism.

Both the Economic Affairs and Taxation Committees and the Federal Council were tasked with drafting a bill to implement these initiatives. The Economic Affairs and Taxation Committee of the Council of States has suspended work on the two cantonal initiatives so that the foundations can be developed by the Federal Council, more specifically the FDF as responsible department, as part of the implementation of the motion submitted by the Finance Committee of the National Council.

Reduction of the tax-free limit from CHF 300 to CHF 150 per person

Motion 19.3975 of the Finance Committee of the National Council calls for the drafting of a bill to improve fair taxation in tourist traffic. This is to be achieved in particular by lowering the tax-free limit and/or aligning the tax-free limit with the de minimis limit of the country of origin.

The Federal Council had requested that the motion be rejected as it is of the opinion that a lower tax-free limit would lead to a significant increase in low-value customs clearances in tourist traffic and thus to a disproportionate burden on the Federal Office for Customs and Border Security (FOCBS) and citizens.

In implementing the motion, the FDF proposes lowering the tax-free limit from CHF 300 to CHF 150 per person. In the FDF's view, an even lower tax-free limit or adapting the tax-free limit to the different de minimis limits of neighbouring countries would disproportionately increase the burden on both the FOCBS and travellers in terms of customs clearance and checks. The lower the tax-free limit is set, the greater the number of customs clearances. The proposed lowering of the tax-free limit also largely satisfies the concerns of the two cantonal initiatives 18.300 and 18.316.

In order to implement the lower tax-free limit, the FDF Ordinance of 2 April 2014 on the tax-exempt import of goods in small quantities, of insignificant value or with a negligible tax amount (SR 641.204) must be amended. Due to the ramifications of such an amendment, a consultation will be held. An amendment to the FDF Ordinance could probably come into force on 1 January 2025.

The lowering of the tax-free limit is to be accompanied by steering measures so that customs clearance is largely digital in future. In particular, the customs clearance application QuickZoll is to be modified for this purpose. An upgrade to also enable customs clearance in the app at a reduced VAT rate is expected to be possible from 1 January 2027.

The consultation will last until 15 March 2024.

Address for enquiries

FDF Communications
Tel. +41 58 462 60 33, kommunikation@gs-efd.admin.ch