Duty-free stores are retail outlets whose goods are exempt from certain local or national taxes and duties, on the condition that the goods sold will be sold to travelers who will take them out of the country. These stores are typically located in international airports, sea terminals, onboard cruise ships, and during international airline flights. Some duty-free shops also operate in central business districts away from airports or other ports.
Key features of duty-free stores include:
-
Tax exemption: Duty-free stores sell merchandise that is exempt from duties and taxes with the understanding that they will be taken out of the country for use.
-
Product selection: Duty-free stores sell a variety of products, including liquor, chocolate, perfume, tobacco, electronics, luxury fashion accessories, and more.
-
Price: Duty-free items are generally cheaper compared to regular retail store prices. Advertisements boast that duty-free prices are 10% to 50% lower than domestic prices.
-
Tax-free limit: Products bought in the duty-free store are tax-free up to a limit of €430 per person.
It is worth noting that duty-free shopping has a twist in the European Union (EU). Goods you buy while traveling between EU countries are duty-paid or taxable. Products you buy while traveling to, or away from, an EU country are duty-refund, meaning the traveler must apply for a refund of the EUs value-added tax.
