Meat import clarification

Food & Drink, Events and Entertainment
1
Hi everyone,

my question is really simple, but I was not able to find a proper answer.

I am going to buy some meat in Italy from a dear friend of mine who has a butcher shop, and I am going to declare it at the custom to pay the 17CHF/Kg for importing. So far, everything is clear.

The question is the following: how is the 300CHF tax-exemption limit calculated? Is it based on an estimate made by the custom agents, or it is based on the invoice I will give them? Because my butcher will give me an invoice for the meat I will buy, butthe price will be in Euro. I will go there with my girlfriend as well, so if I read correctly our import limit is 40kg and 600CHF. If the invoice is reporting 400 Euros, this will be okay?

Thank you very much for helping me with this!

2
For meat, the 300CHF exemption won't help you, you can import 1kg free per person in total.

3
What fatmanfilms said is correct. If you import 40kg of meat between the two of you, you can expect a duty bill for CHF646- (38 x CHF17 per kilo, excluding the single kilo that you are each allowed to import duty free).

In addition, you will pay (based on the invoice amount) VAT on the amount over CHF300. Someone smarter than me can tell me whether you pay VAT based on the EUR purchase price (converted at the prevailing Swiss franc rate), or whether it is based on ([purchase price + duty] * 8%).

My suspicion is that VAT is payable on the combined purchase price plus duty.

Given the vast expense of importing meat, I would reserve it only for the choicest cuts -- but it's your money!

4
You can import 1kg/person FOR FREE. If you import more than 1kg, than you have to pay 17CHF/kg for each kg exceeding the first one.

Then, the second step concerns the duty-free (the 8% of VAT), which is related to the 300CHF. It is clearly stated here http://www.ezv.admin.ch/zollinfo_pri...x.html?lang=en

As I said, my question is on how the 300CHF are calculated

5
http://www.ezv.admin.ch/zollinfo_fir...x.html?lang=en

Assessment basis

We calculate the import tax (VAT) on the basis of the so-called consideration or market value. The ancillary costs up to the destination are included in the calculation unless they are already part of the consideration or market value (packaging, insurance or transport costs, as well as costs for customs processing, any customs duty or fees for authorisations, etc.). The relevant statutory provisions can be found in Article 54 of the VAT Act (SR 641.20 → available in German, French and Italian).

Consideration

If an item is imported following a purchase, the import tax is based on the consideration paid.

Consideration refers to everything that was paid or is payable by the recipient of the goods or by a third person in the recipient's place. Consideration also covers compensation for all costs, even if these are set out separately in the invoice.

When items are re-imported following processing or repairs abroad, the import tax is likewise based on the consideration paid. In this case, however, consideration refers to the cost of the work carried out on the item in question. More information can be found in publication no. 52.01 (available in German, French and Italian).

Please take note of the special provisions on consideration when importing items

that still have to be assembled in Switzerland or on which work is still needed before delivery to the end client (see publication no. 52.02 for more information → available in German, French and Italian) for which the foreign supplier hopes to find a buyer in Switzerland (see publication no. 52.03 for more information → available in German, French and Italian) from or for auctions (see publication no. 52.04 for more information → available in German, French and Italian) that are being imported only temporarily for use, e.g. based on a rental agreement (see publication no. 52.10 for more information → available in German, French and Italian)

Market value

If no consideration is paid for the importation of an item, the import tax is based on the market value. The market value refers to the sum a third party would have had to pay to buy the item. The market value is used for calculating the tax when importing free commercial samples, gifts or free replacements, for example.

Supporting documents

It must be possible for the value details indicated in the customs declaration to be substantiated with a copy of the commercial invoice or receipt, for example.

If there is doubt concerning the accuracy of the customs declaration or if data is missing, we can estimate the assessment basis and set it ex officio.

6
In summary, they will want to see a receipt. If you cannot produce a receipt, or if they believe that you have falsely declared a low value, they can estimate the value themselves.

In my experience, when the Customs agents estimate value, they typically do it at Swiss prices.

7
I think we can safety assume that your meat will be more than 7.5CHF per Kilogram (300 CHF/40).

More pertinently, I think we can safety assume that the customs office will assume it cost more than 7.5 CHF per kilo.

You'll pay VAT on the whole amount.

As you want to bring in over and above 1Kg, you pay duty on the whole amount which is, for meat is 17 CHF per kilo, irrespective of what the meat actually cost you.

So that's 680 CHF just for the duty for your 40Kg and ten add the VAT on top of that which is 2%.

8
Thank you very much for the second link you shared, I was not able to find that information online

And, of course, I am not going to import chicken

9
Customs are supplied with an exchange rate to use when calculating the value in CHF. Where they get it from, I've no clue.

Today, on xe.com, the rate is 300.00 CHF = 248.790 EUR. Therefore if I was wanting to keep below the limit, I'd probably go for €240 EUR (once I've deducted the VAT applied by the source country).

10
Not quite correct, they are supposed to charge you VAT for the total. eg If you import items worth 300.01CHF you will pay the 8% VAT for the 300.01 CHF not just the 1 rappen.

11
Only if a single item (or related set of items, like a set of car tyres) is more than CHF300. Otherwise, you can bring in the first CHF300- duty-free.

I'm not sure whether customs will consider an import of meat as a single item (in which case it is all liable to VAT), or whether they'll allow you to itemize the receipt and only charge on the amount over CHF300. I suspect it's very much down to the discretion of the agent you get on the day.

12
Still not correct according to http://www.ezv.admin.ch/zollinfo_pri...x.html?lang=en

13
Not right. If you exceed 300CHF, you pay MWST on the full value, not everything after 300CHF, even if you've many small items.

Edit: link and picture removed as ninja'd by JoMiFa!

However, if you bring in 3kg of meat, you only pay duty on 2kg. 1 kg being duty free.

14
Ok, let's try to make it clear with a realistic and concrete example.

I will go in Italy with my girlfriend (2 persons), I will buy 20kg of meat in total.

Let's assume I will pay 20 euros/kg, for a total of 400 euros (some cuts are cheaper, some are more expensive, but 20euros/kg is a fair average for Italian prices.

I will have an invoice printed by my butcher for a total of 400 euros, of which 22% is Italian taxes (I don't know if it must be included in the total or not, let's say it is). Let's say in CHF it is 500CHF, to be shared between the 2 persons (I assume meat is not considered as a single item. In any case, I can ask the butcher to split in 2 invoices).

Case 1 - no VAT is due. In this case I will have to pay a total of 17CHF * 18kg (2kg can be imported for free), and it will be 306CHF of import price.

Case 2 - VAT must be paid for some reason. In this case, I will pay 8% on 500CHF (which is 40CHF). + 306 CHF of import duty.

In case 1, I will pay a total (considering the price I paid for the meat) of 806CHF for 20kg of meat, making it an average of 40CHF/kg.

In case 2, I will pay a total of 846CHF for 20 kg of meat, making it an average of 42CHF/kg.

For me, this price is worth, because I know personally the butcher, the meat he sells and the way cows are treated in his area. As for the price, including everything, it is still cheaper than Swiss meat.

Please, let me know if I am missing something. And be it clear that I WANT to declare the meat, I just want to avoid bad surprises (like I have to trash all my meat, or I must pay 100CHF for each kg).

Thanks to everyone contributing

15
I might add, that despite the offical policy. I do not think all customs agents are aware of it. I once bought some ski boots in Germany for over 300CHF. And when I declared to the Swiss border agent, they only charged me for VAT on the excess over 300CHF.

16
Only if you declare- if you get caught they will charge you for the lot. Not declaring = no allowance.

17
Ah, I got confused with splitting a single item. It's not possible to split a single item of >300CHF between two people. So two people importing a CHF400 table, for example, can't claim half-the-value each.

18
It isn't. But again, some border guards don't know this. So the value for MWST purposes is around €330. (400 divided by 1.22).

I think you'll have case 1. You'll only pay duty on 18kg.

19
It will be case one, in your example.

However, in your example, if you bought in more than 600CHF of meat between both of you, you would have to pay on 2.5% VAT on the whole amount and not 8% as it's food.

(of course you're paying the duty as well in both cases on top of this).

20
From the web site

In case your interested "The value after deduction of foreign value added tax, provided this is indicated on the receipt/invoice, is decisive." Doesn't make any difference for your example though. And even if it did, it is just 7.5CHF for the VAT on 300 CHF