VAT and customs loophole narrowed to dissuade cross-border shopping
Switzerland is to cut from CHF 300 to CHF 150 the VAT and customs-free threshold for imports of goods. This applies on goods brought into Switzerland by individuals for personal use or as gifts.
The measure is to dissuade Swiss shoppers on the border with other countries making regular purchases abroad.
The new threshold will apply from 1 January 2025.
The standard VAT rate is 8.1%, although a Swiss VAT rise in 2026 is proposed.
In principle, all goods carried are taken into account for the granting of the tax-free limit, including duty-free foodstuffs, tobacco products, alcoholic beverages, household pets and repairs or maintenance work carried out abroad on your own private vehicle.
The value of personal effects, travelling provisions and fuel for vehicles is not included.
In addition to VAT, you must pay customs duties if the goods you are carrying exceed the duty-free allowances for alcohol, tobacco products and certain foodstuffs.
VAT and customs thresholds
VAT and customs duty thresholds are the limits below which goods brought into a country are exempt from import taxes. These thresholds vary by country and apply to both travelers and online purchases from foreign sellers.
- European Union (EU): The EU has a low threshold for VAT on imports. Since July 2021, all non-EU imports are subject to VAT, regardless of value. However, gifts below €45 sent between individuals remain exempt. Customs duty, typically applied on goods valued above €150, varies based on the type of product.
- United States: The U.S. exempts goods worth up to $800 from customs duties for personal imports under the de minimis rule. Above this threshold, goods may incur duties based on their category and value. Gifts up to $100 are exempt from duties if sent from abroad.
- Canada: Canada imposes a lower limit for customs and VAT exemptions. Goods worth less than CAD $40 are exempt from taxes when purchased internationally. For gifts, the exemption is CAD $60. Beyond these limits, goods incur duties and the Goods and Services Tax (GST).
- Australia: Australia abolished its AUD $1,000 GST-free threshold for imports in 2018, meaning that all goods imported for personal use are subject to the 10% GST regardless of value.
These thresholds help balance trade protection with encouraging cross-border commerce.
