Nestled at the heart of Europe, Switzerland is a country that is filled to the brim with breathtaking natural beauty, captivating culture, and culinary delights. Its majestic landscapes and snow-capped mountainous regions bring you closer to mother nature in a way that you would never have imagined. And once you make your way into the more populous regions of the country, that is where you will find the bustling cities of Geneva and Zurich, where history and modernism are intertwined seamlessly.
For the uninitiated, Geneva is home to several international organizations and renowned museums, most notably the World Health Organization (WHO). Switzerland’s contribution to the world does not end there, as the country is a food lover’s paradise, offering a diverse range of chocolates and cheese. And when you are done exploring all of that, you are welcome to seek the thrill of winter sports such as snowboarding and skiing. So, if you are looking to take a short vacation to the country of Switzerland and want to know how the VAT refund process works for tourists, then be sure to go through our comprehensive guide till the end.
How to Claim VAT Refund as a Tourist
The Federal Tax Administration (FTA) of Switzerland states that as a tourist, if you have bought something over the counter in Switzerland and want to export it from the country, then you can easily do so tax-free. However, to do that, you will need to obtain the export document from the seller or supplier.
The export document (supplied by the seller) should contain the name and location of the seller as well as the VAT number, along with the name and address of the customer or tourist. Additionally, the export document should contain the details of the buyer’s identity document (such as a passport or any other equivalent document), the date of delivery of goods, a detailed description of the goods along with their selling price (excluding VAT), the signatures of the buyer and seller, and a separate field for providing official confirmation.
To take advantage of the VAT-free (Value Added Tax) scheme in Switzerland, simply follow the below-mentioned steps precisely.
- Before you make a purchase from a Swiss retailer, confirm whether the seller will be able to provide you with tax-free benefits as a tourist.
- After making your preferred purchase from the seller, ask for the export document from the seller.
- Once you obtain the export document, take it with you on the day of your departure from Swiss territory and present the document at a Swiss customs office (without being requested to do so). Also, you need to present the goods purchased along with the document.
- The customs authorities will confirm the export of the goods on the export document and will return the document to you (as you are the buyer). The verified export document can then be forwarded to the seller or supplier, as it is the responsibility of the buyer.
- After official confirmation, you will be able to export the goods out of the country without any difficulties, and the refund of the VAT paid by you will be refunded by the seller or supplier electronically.
What You Should Know of the Requirements
According to rules defined by the FTA of Switzerland, supplies of goods that are provided to tourists who are residing abroad are exempt from paying tax only if the following conditions are satisfied: the retail price of the goods must be at least 300 Swiss Franc (including VAT), and the retail price of the goods excluding VAT must also be indicated in the export document; the buyer should not be domiciled within the Swiss territory; it does not matter if the buyer is a Swiss or a foreign citizen; the goods bought must be intended for personal use or as gifts; the buyer must export the goods within 90 days from the date of purchase; and the export document must be drawn in the name of the buyer.
Keep in mind that the proof of exportation can be provided either by a confirmed export document or an unconfirmed export and an import document confirmed by the government of the country in which the buyer is taking the goods (or Swiss embassies or consulates in that country). Also, joint declarations in the export document will not be permitted. And lastly, if one or more of the aforementioned conditions are not met, then the tax-free scheme will not be applicable.
In addition to the above-mentioned, the seller or supplier also requires the following set of documents from the buyer: a list of the tour members; details concerning the start and end of the trip; details concerning the entry and departure from Switzerland; the buyer’s tour schedule; the buyer’s travel route; the passport of the buyer; and details of the commercial tour operator if the tour was organized by a tour operator. Finally, remember that the tax exemption process when it comes to VAT refunds can only be claimed by the seller or supplier, as the buyer cannot request a VAT refund from the FTA.
