German lawmakers are introducing a new initiative that aims to attract more Swiss shoppers by allowing them to reclaim VAT (7% or 19%) on their purchases.
The program, set to launch in summer 2025, includes the development of a mobile app that will enable Swiss citizens to automatically obtain tax rebates, making shopping in Germany even more appealing.
Swiss citizens, known for their high average annual income of €101,000, currently face a time-consuming process for tax refunds that requires customs confirmation and applies only to purchases over €50. With the new app, the tax refund process will be streamlined, offering Swiss tourists savings on purchases. For example, a crate of beer priced at €12 would cost only €10 after tax rebates.
“Germany is making Swiss tourists happy again,” reported the Swiss newspaper Blick.
The initiative is supported by German politicians from the CDU and SPD parties, aiming to boost the economy of the German border regions by drawing more Swiss consumers.
However, the European Tax Union has expressed concerns about potential misuse. Its leader, Michael Jaeger, is worried that Swiss citizens might share access to the app with their contacts in Germany, potentially leading to financial losses for the government. Jaeger has called for a comprehensive risk assessment before the app’s implementation.
