Germany is set to simplify shopping for Swiss tourists by introducing a new app for VAT refunds.

Starting next July, a test phase will begin for a smartphone app that allows Swiss shoppers to reclaim German VAT without the hassle of stamping receipts at the border.

This digital innovation aims to reduce border congestion and eliminate the need to adhere to customs office hours.

Additionally, the app will remove the previous 50 Euro threshold for VAT refunds, allowing savings on smaller purchases.

With Germany's VAT on non-food items at 19%, significantly higher than Switzerland's 8.1%, Swiss shoppers stand to benefit greatly.

The move comes as Switzerland lowers its duty-free limit from 300 to 150 Swiss Francs, prompting Germany to enhance its appeal to cross-border shoppers.