Tax-free shopping between France and Switzerland

What is tax-free shopping? 💡

VAT exemption: definition

What is a VAT exemption? Quite simply, it is an exemption from paying value added tax (VAT). As a reminder, in France, VAT is a direct tax on consumption, introduced in the 1950s to simplify the tax system. Since then, many other countries, including those in the European Union, have also introduced a value added tax. Consequently, the 27 Member States of the European Union apply VAT rates that vary from country to country. In France, the current VAT rate is set at 20% for most goods and services.

The tax refund scheme therefore applies to all tourists living outside the European Union who are visiting France. Subject to certain conditions, these tourists may, following the purchase of certain goods and products, benefit from a tax refund, i.e. an exemption from paying value added tax (VAT). So, if you live in Switzerland and make purchases in France, you may be eligible for the tax refund! This highly advantageous process is subject to rules and conditions. 

Who is eligible for the tax-free allowance?

Who is eligible for the tax refund? Here are the conditions for claiming a tax refund on your purchases in France: 

• you must be at least 16 years old (you will be asked to show valid ID at the time of purchase)
• You are visiting France for a period of less than six months, for any reason (tourism, business travel, visiting family if you are an expatriate, etc.).
• when making purchases, you are a resident of a third country or a country outside the European Union

Which goods and purchases are eligible for tax-free shopping?

Please note that, first and foremost, the VAT refund procedure unfortunately does not apply to all goods. Let’s take a look at the purchase conditions that may qualify for a VAT refund:

• First important point: you must make your purchase from a retailer that offers tax-free shopping. You’ll recognise them by the ‘tax free’ logo on their shop front. 
• In duty-free zones, such as those found in airports, goods are also tax-free. In this specific case, the products are exempt from tax because they are sold in international zones (airports, seaports, etc.).
• The purchase in question must be a retail item intended solely for tourists. It is therefore a purchase for personal, non-commercial use. 
• You cannot purchase more than 15 units of the same item. 
• Certain goods are excluded from tax refunds, such as tobacco, weapons or ammunition, cultural artefacts, petroleum products, prescription medicines…
• Purchases must be made on the same day, in the same shop.
• The total value of purchases must be more than 100 euros.

What are the benefits of tax-free shopping between France and Switzerland?

When you live in Switzerland, what are the benefits of claiming a tax refund on purchases made in France? As you’ll have realised, the tax refund applies to a very wide range of goods. From ready-to-wear clothing to eyewear, leather goods and jewellery, as well as foodstuffs and even wine… the possibilities are endless. Multimedia items, sports equipment, DIY and gardening products, home décor, art objects and health and beauty products are also included. So, all your gifts, purchases or souvenirs bought in France can be eligible for VAT exemption, which often amounts to nearly 20% of the total cost! This can therefore represent a real saving, which can certainly help you stretch your shopping budget. 

As you know, whilst the minimum wage in Switzerland is high, the cost of living there is much higher than in France. It can therefore be very advantageous for you to make certain purchases in France rather than in Switzerland. Doing your shopping in France can turn out to be a real bargain! 

How do I get a tax refund? 🤓

Have you made purchases in France and would like to claim a tax refund before returning to Switzerland? You should be aware that some shopping centres and department stores popular with tourists have dedicated tax refund desks. You can seek assistance there. Otherwise, here’s how to claim a tax refund on your purchases in France!

How do I obtain my tax-free form?

Firstly, you need to obtain the export sales receipt. When making a purchase in-store, you must ask the shop assistant for the Tax Free Form. It must be signed by both you and the sales assistant. It contains the following information: 

• The buyer’s contact details (surname and first name, country of residence, passport number)
• The contact details of the point of sale (name and address of the shop, VAT registration number)
• Name of the tax-free operator, if necessary
• A barcode 

What documents do you need to present when going through customs?

In order to claim the VAT refund, you will need to provide certain documents when you go through customs. You will need to provide proof of your purchases and of your status as a non-EU resident. You must also have the goods in question with you at that time, as well as the bank card used to make the purchases. This is because the VAT refund will be credited to that card. 

The PABLO terminals

Have you heard of PABLO kiosks? These easily recognisable navy blue machines are part of the computerised tax-free refund process. PABLO kiosks are very convenient and make the tax-free refund process easier for travellers. Before leaving the EU, go to a PABLO terminal with your tax-free form, your travel ticket, your purchases and your ID. By scanning the barcode on the form at the terminal, you can validate your tax-free form. By following the instructions on the PABLO terminal, the procedure takes just a few minutes. 

Where can I find PABLO kiosks? They are available at most airports, border train stations, ports, and certain border customs posts. The full list is available here. In Switzerland, you will find them at Geneva-Cointrin Airport, as well as at the border crossings at Vallard-Thonex, Saint-Julien-en-Genevois and La Ferrière-sous-Jougne.

VAT refund

How long does it take to receive a VAT refund after submitting a tax refund claim? The refund will be processed within a maximum of 21 days after your return to Switzerland. You can be reimbursed directly in cash at a currency exchange counter or by bank transfer. If you have chosen bank transfer, you do not need to send the signed form to the retailer; the PABLO terminal will automatically transfer all the information.

Swiss VAT

Please note that once you are in Switzerland, you will still be required to pay Swiss VAT. This is because all goods purchased in France or abroad and subsequently brought into the country are subject to tax, namely Swiss VAT. Unlike its neighbours in the European Union, Switzerland applies a lower VAT rate of 7.7%.

At first glance, the process of claiming a VAT refund after your purchases, or tax-free shopping, may seem difficult to understand. However, it is simpler than you might think and can offer a real financial benefit! Shopping in France can save you more than you realise. You can take advantage of tax-free shopping on a wide range of items, from ready-to-wear clothing to food products… VAT refunds are one of the many benefits enjoyed by Swiss residents and expats. If you’re exchanging money between Switzerland and France, whether in Swiss francs (CHF) or euros, make use of a reliable and convenient currency converter. As your trusted financial partner, b-sharpe supports you with all your currency exchanges between France and Switzerland.