Lower VAT border allowance leads to fuller cars

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The lowering of the tax-free limit or cross border shopping has not increased queues at border crossings – which was a fear, but it has had an unexpected consequence.

There are simply more people in cars. 

At the beginning of the year, the limit was cut from CHF 300 to 150.

The reduction was following pressure from Swiss retailers who fear they’re losing out to those seeking a bargain in  neighbouring countries.

But border control officers say there are not more queues – but more people in cars as the limit applies on a per person basis.

One observation from guards at the Ticino border with Italy as that its more common for whole families to shop together.

But is it having the desired effect and boosting trade for Swiss retailers?  Trade associations in German speaking parts of the country say it’s too soon to say.

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