Swiss Federal Customs App Controversy: Shopping Tourist VAT Rip-Off Exposed

2024-03-16 14:00:12

“Pure rip-off”

Federal customs app exempts shopping tourists

Anyone who wants to declare their goods using the app after shopping in Konstanz may pay significantly more. The app only applies the higher VAT rate.

1/5

In the future, shopping tourists could also have to pay VAT on smaller purchases.

The Federal Council led by Finance Minister Karin Keller-Sutter wants to grab the wallets of shopping tourists. Anyone who buys meat and shower gel in Konstanz (D) or Weil am Rhein (D) will in future have to pay VAT from 150 francs onwards. So far the limit is 300 francs.

The debate shines a spotlight on the federal customs app: supporters hope that even with a lower exemption limit there will be no traffic jams or complex controls. Finally, you can use the app to enter your purchases and pay directly. But those who do this may be paying too much, the CH Media newspapers report. The app only calculates the higher VAT rate of 8.1 percent – even for food, which is actually taxed at 2.6 percent. This is expensive: Anyone who imports food for 350 francs pays 28 francs instead of 9.

“Shame for Switzerland”

The reactions in the App Store are corresponding: there is talk of “pure rip-off” and even a “disgrace for Switzerland”. There are just 2.7 out of 5 possible stars in the App Store, and many users only give one star.

The Federal Customs Office told the CH Media newspapers that when it was introduced in 2018, they wanted to make the calculation and payment process as quick and streamlined as possible. Nobody is forced to use the app – anyone who gets out of the car and declares the goods at customs also gets the lower VAT. The higher VAT rate is pointed out during the initial installation.

The federal government wants to change practice

However, the federal government wants to change the practice: “An expansion so that customs clearance in the app is also possible at a reduced VAT rate is planned,” a spokesman for the Federal Office explains to CH Media. However, this will only be possible at the beginning of 2027.

The lower value exemption limit is to be introduced from January 2025. By the way, it is not yet clear whether it will actually remain at 150 francs: the retailers’ association is even calling for a reduction to 50 francs, while the SP and consumer advocates want to stay at 300 francs. The Federal Council is expected to make a decision soon.

1710602283
#Customs #app #works #higher #VAT #rate

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.