VAT refund in Switzerland: A complete guide to tax-free shopping in Switzerland for tourists

Switzerland is a popular destination among British travellers, thanks to its majestic snow mountains, the beautiful lakes, and untouched beauty of nature. However, what many people aren't aware of is that shopping in Switzerland can be just as delightful. From high-end shopping centres to trendy boutiques, you might find yourself needing to make extra room in your luggage for all the shopping you'll do!

However, did you also know that Switzerland can be a pretty expensive country to visit? Besides the high cost of travel, you are also required to pay VAT, which can put a dent in your budget. However, you need not worry, as Switzerland offers a VAT refund for tourists before they leave the country. You can read this article to learn about the process and get your VAT refunded. Additionally, the article discusses a way to save even more money by getting a Wise debit card. More on that later!

How much is VAT in Switzerland?

As you might have already known, Switzerland is not part of the EU customs territory. The Swiss VAT doesn’t follow the same set of EU rules, so the Swiss VAT is actually relatively lower. Before getting to know how much the VAT is, let’s explore three different tiers of the Swiss VAT system.

The VAT rates in Switzerland differ depending on the type of goods and services you purchase. Generally, there are three different tiers of VAT rates in Switzerland: the normal, reduced, and special rates. For most goods and services, you will most likely come across the normal rate of 8.1%. You will also see a reduced rate of 2.6% applied to specific categories of goods and services such as food, agricultural products, medications, newspapers, etc. And, you will only be charged the special rate of 3.8% if you use accommodation services such as hotels or hostels.

If you are still unsure about the rates applied to your bought items or services, you can refer to the table below for a quick check:¹

How much VAT is refunded in Switzerland?

In many cases, you will not be reimbursed the whole amount of your VAT. There are some explanations to this:

The amount of your VAT refund in Switzerland depends both on the percentage VAT tier you are charged and the method you choose for obtaining your refund. Plus, you might also need to pay for administration fees for processing the refund. These fees can vary and may be deducted from the refund amount.

In general, the actual VAT refund amount you receive may differ in each case.

Who is eligible for tax free shopping in Switzerland?

Switzerland has a simple and straightforward VAT refund scheme for tourists, which is aptly named Tax-free for Tourists. There are some eligibilities you need adhere in order to receive your VAT refund in Switzerland:²

• You must not be a resident of Switzerland;
• Your invoice needs to be at least CHF 300 (incl. VAT);
• You need to be able to show the export document, which must include your name and the retail price excluding VAT;
• You buy the goods solely for personal use or for gifting; and
• You must export the goods out of Swiss territory within 90 days from the day you buy.

How to get VAT refund in Switzerland?

You have now understood the VAT system in Switzerland! Let's proceed with the following steps to get your money back when shopping.

Receive an export document

When shopping in Switzerland, it's important to start the process of getting your VAT refund right at the store. Be sure to request a signed export document from the sales assistant, which should include all the necessary details of your purchase. In some cases, the retailer may also ask you to show an officially recognized identity document, so don't forget to bring one along with you when you go shopping.

Have the forms stamped

You can claim your Swiss VAT refund when leaving Switzerland by any mode of transportation. You must ensure you can present the goods and the required paperwork. The customs officers will help you confirm the export document at the border. Most of the border crossings operate 24/7. Other smaller border crossings open only at certain times. So check their hours before you leave the country.

If no customs officers are present at the Swiss customs office upon departure, you can also go to a recognized office abroad to validate your export documents.³⁺⁴

Obtain a VAT refund

After getting your export documents stamped, head to a tax-refund intermediary at the airport to claim your VAT refund in cash or on your credit card.

This article simplifies the process of getting your VAT refund before departing from Switzerland into a few easy steps. It's as simple as obtaining your export document and getting it stamped at customs. So, the next time you're enjoying the wonders of Switzerland, use this article as a straightforward guide to get your VAT refunds and enhance your shopping experience!

If your card's denominated currency (e.g., GBP) differs from the local currency (e.g., CHF), you might encounter a conversion when receiving the VAT refund. The card issuer determines the conversion rate, typically with a mark-up. However, here's the good part: you can receive your refund conversion fee-free with a Wise debit card if no currency conversion is involved. Or, even if a currency conversion arises, Wise only charges a small fee and converts at mid-market rates without markups. This card lets you hold 40+ currencies, including CHF, maximising your savings for your next adventure. Start your adventure with Wise today!

Please also be aware that tax rates and regulations may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

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Sources used for this article:

Sources last checked on 11-Jun-2024.