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How German retailers help Swiss shoppers circumvent tax rules

Despite the lower tax exemptions, business owners in Germany are keen to keep Swiss shoppers, and have found a way to help their customers maximise the tax-free allowance without actually breaking the law. How? The answer is simple: carpooling. Rather than have one person per car – and thus be limited to a 150-franc tax allowance – German supermarkets like Edeka and Marktkauf are urging their Swiss customers to shop in groups. In other words, every passenger is entitled to a 150-franc minimum, even those who don't actually shop. Edeka and Marktkauf, for instance, are using posters showing a car with a Swiss flag and a family waving happily, accompanied by the slogan: "Shop together, save together." Many people seem to have heeded this advice because, according to media reports , 'customs officials report fuller cars, as more people are traveling together to maximise the tax allowances". Fuller cars, less tax revenue for Swiss cantons Officials in the cantons bordering Germany are obviously not happy about this shopping strategy. The original intent of halving the tax exemption in the first place was to make shopping abroad less attractive for the Swiss, encouraging them to spend their money locally instead and thus benefit Switzerland's economy in general and retail sector in particular. Advertisement Draconian measures Given the full-car strategy, the border cantons of Thurgau and St. Gallen are calling for the customs exemption limit to be completely abolished, which would imply that any shopping done abroad, no matter the amount, would be taxed. Therefore, the appeal of cross-border shopping sprees would disappear. Walter Schönholzer, director of Thurgau's Economic Affairs said that he would monitor the effects of the new regulation and make adjustments if necessary. However, Sandra Stadler of the canton's Centre Party pointed out that it would be 'disproportionate' to impose customs on even the smallest purchases. It would also create bottlenecks at border crossings as each car would have to be stopped and checked for purchases. There is no news about the situation at Swiss borders with France and Italy.