More attractive shopping in Italy puts pressure on Ticino’s retail trade
Published: Thursday, Feb 1st 2024, 13:10
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From today, Thursday, the threshold for VAT refunds in Italy will be 70 euros instead of the previous level of just under 155 euros. The Ticino retailers' association Federcommercio fears that the crisis in the Ticino retail trade will worsen.
Many people in Ticino already shop regularly in nearby northern Italy. With the lower threshold for a VAT refund, the incentive to shop across the border is likely to become even greater. Shopping tourists from Ticino will now receive a VAT refund on their return to Switzerland for purchases of 70 euros or more.
This brings Italy into line with other neighboring countries such as Switzerland, which have already had lower VAT refund thresholds for some time. Shopping tourists in Germany receive money back on their return from as little as 50 euros. In Austria, the threshold is 75 euros.
Federal government wants to curb shopping tourism
The federal government is currently examining measures to curb shopping tourism. In future, anyone who lives in Switzerland and shops across the border will only be able to import goods worth CHF 150 duty-free instead of CHF 300. The Federal Department of Finance (FDF) opened a consultation on this at the end of last year.
In a written statement, Federcommercio sharply criticized the attitude of the Ticino government during the consultation process. The government council is only protecting the interests of shopping tourists and neglecting those of local retailers, according to a text on the association's website.
A clear positioning in favor of the Ticino retail trade is needed. This sector has been in crisis for several years. The "continuous erosion of sales figures" is seriously jeopardizing the survival of numerous companies and thus also the preservation of jobs.
The Ticino government itself did not want to comment on the lowered threshold for VAT refunds in Italy on Thursday.
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