The VAT War - Patti Chiari RSI Info

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RSI Info

Published on Mar 12, 2024
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Since February 1, Italy has lowered the minimum threshold of purchases with which those residing in Switzerland can get a VAT refund from 155 to 70 euros: an incentive from the Italian government to trade. Shops across the border are satisfied: more customers, more purchases and more tax-free invoices for Ticino residents. They have immediately taken advantage of it, thanks to the already convenient prices abroad and the favorable exchange rate. Switzerland, however, is reacting. The idea? Lower the exemption from 300 to 150 francs above which you have to pay Swiss VAT on purchases abroad. A proposal that is not well received by the Ticino government, worried about the possible contraction of the purchasing power of Ticino residents. Who, when leaving Italian supermarkets, have their say in Patti Chiari. Large and small supermarkets, however, applaud the exemption of 150 francs in favor of local trade. But what about higher prices compared to Italy? Patti Chiari has sought answers from supermarkets and suppliers. And he went shopping in Italy with the Italian tax-free, simulating the Swiss exemption of 150 francs. How much VAT would you pay? Would shopping abroad remain convenient? Between calculations and rates, the real stakes are surprising. Not just food. The 70 euro VAT refund also concerns objects and clothes, on which you save 22% of VAT. The comparison between the prices of the same clothing items on this side and the other side of the border is astonishing. Ticino shops are worried, struggling with foreign competition: examples, hopes and proposals: because every year, from the wallets of the Canton of Ticino, half a billion francs end up in Italian shops. But then, how much does it cost to go shopping abroad? The test on buying a coat: between time, car and petrol, is it still worth it? Positions on rsi.ch/pattichiari Follow RSI Info on: SITE: https://www.rsi.ch/info/ PLAY: https://www.rsi.ch/play/tv FACEBOOK: / rsiinfo INSTAGRAM: / rsiinfo

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