The Federal Department of Finance (FDF) is extending the period for tax-free export of goods purchased by tourists in Switzerland from 30 days to 90 days. The change will come into force on 1 August 2020.
With the amendment of the "FDF Ordinance on the Tax Exemption of Domestic Deliveries of Goods for the Purpose of Export in Tourist Traffic", Switzerland is aligning its rules with internationally accepted standards. This will increase customer-friendliness. There is no change to the requirements for proof of tax-exempt sales in tourist traffic. The new deadline applies to goods purchased from 1 August 2020.
In the future, more tourists will benefit from tax-free shopping. Since they rarely stay in Switzerland for more than 30 days, the loss of VAT revenue is likely to be minimal. For the watch, jewellery, tourism and general retail sectors, the new regulation will have a slightly positive effect.
The amendment to the ordinance corresponds to a demand of Motion Vitali (17.3298) "Reducing bureaucracy. With electronic export validation into the future". The electronic export validation, also demanded in the motion, requires a change in the law. The consultation process was opened on June 19, 2020.
The amendments to the Regulation and the explanatory notes to the Regulation can be found in the list below:
- FDF Regulation on tax exemption of domestic supplies of goods for export in tourist traffic
- Explanatory notes on the FDF Regulation on tax exemption for domestic supplies of goods for export in tourist traffic
The FDF press release of 14 July 2020 is available here.
