Starting January 1, 2025, Switzerland reduced the tax-free allowance for cross-border shoppers from 300 to 150 francs, aiming to discourage shopping abroad. German retailers, however, have countered this by encouraging Swiss customers to carpool, allowing each passenger a tax exemption. This strategy aims to maintain cross-border shopping despite the lower allowance. Swiss officials express concern over tax revenue losses due to this approach, with some advocating for complete abolition of the tax exemption to protect local economies.
By encouraging carpooling, German retailers have found a legal means to help Swiss shoppers maximize tax-free allowances, even as Swiss authorities aim to reduce cross-border shopping.
There is growing concern amongst Swiss cantons that the carpooling strategy directly undermines the intent behind reducing the tax-free allowance for cross-border shopping.
Local officials in Thurgau and St. Gallen argue that without abolishing tax exemptions entirely, the intention to bolster local economies may not be achievable.
The slogan used by German supermarkets to promote this shopping strategyâ'Shop together, save together'âhighlights the inventive solutions retailers are employing to retain Swiss customers.
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