Swiss shoppers spend billions in Germany, but VAT refund limit stays

Cross-border shopping from Switzerland is big business for German border towns, but shoppers hoping the 50-euro minimum for VAT refunds will disappear may have to wait.

50-euro VAT refund limit extended until end of 2028

Since 2020, shoppers from Switzerland have had to spend at least 50 euros on a single receipt in Germany before they can reclaim the German VAT when they return home. With VAT rates of 19 percent on standard goods and 7 percent on groceries, getting a refund can help shoppers save some money.

Despite earlier indications from customs authorities that the minimum threshold may be removed before the end of 2026, a Bundestag parliamentary committee voted on November 11 to extend the 50-euro limit until December 31, 2028, according to Swiss news outlet Blick.

The agreement is, according to German CDU lawmaker Felix Schreiner, a “compromise” because the German Finance Ministry had previously proposed raising the limit to 175 euros. The final decision on the extension still faces government approval.

New customs app could end queues for VAT stamps

Whether the threshold disappears sooner depends largely on a new digital export certificate (digitaler Ausfuhrkassenzettel, or dAKZ) from German customs. An app will allow shoppers to digitally save receipts and receive a VAT refund without having to queue at the border for a physical customs stamp.

Customers open the app and present a barcode to shop cashiers, which will transfer the receipt. On first use, shoppers may have to register and show their ID when crossing back into Switzerland, after which the app will automatically verify the export using GPS. Retailers will issue refunds either via bank transfer or store credit.

The new system has been tested in a pilot programme since June this year, with 25 Lidl supermarkets in Germany, as well as G-Star, Humanic and Sportscheck, all taking part.

The German customs authority confirmed before the committee vote that the trial is being “evaluated and coordinated”, reports Blick, and that, “according to current plans, the transition to regular operation is scheduled for later this year.” If rolled out nationwide before 2028, there’s a chance that the 50-euro limit could be dropped sooner.

Cross-border shopping boosts retailers in southern Germany

While cross-border shopping is good news for retailers in southern Germany, it remains a sore point in Switzerland, where shops argue they lose customers because prices are lower in Germany. In fact, the Swiss duty-free import allowance was cut from 300 to 150 francs (from around 325 to 160 euros) in 2025, partly in an attempt to reduce cross-border shopping.

Meanwhile, Swiss residents can save money as the cost of living continues to rise. A recent study revealed that shoppers from Switzerland spend 2,5 billion euros annually in southern Baden-Württemberg alone.

This article originally appeared on IamExpat in Switzerland.