What is duty-free shopping?

All you need to know about Duty- Free shopping.


What is duty-free shopping?

duty-freeDuty-Free shopping is something wherein you can purchase products without being charged with levied duties and taxes. It will be charged to you otherwise, on imported products bought at stores. You will find such shops at airports, cruise ships and port cities.

To exempt from duties on your shopping, you must be going outside the country. Although, if the products you purchased at a Duty-free store are within the permissible customs limit which varies from country to country, you can buy them even on arrival in your home country as well. It is an efficient way to purchase high-tax goods like liquor, tobacco, fragrances, edibles, and other gifts.

Some countries impose a condition that you need to have travelled out of your country for at least 48 hours. To ensure that this condition is met, the personnel at the billing counter may ask you to show your passport and boarding pass. You can likewise make purchases from the duty-free trolley in the air as you are technically in international transit.

Duty-Free does not necessarily mean tax-free. If a country levies Value added tax, it will still be applicable in this case.

So, if you are shopping Duty-Free, VAT may not be exempt.

Shopping more than a certain amount is subject to tax exemption. However, the refund rate and target things vary from country to country. Tax exemption rules differ in every country, and you will have to pay tax if you usher in beyond those rules
The limit on exempt is termed the exempt allowance.

Custom charges may apply if one brings more products than the allowance.

Duty-Free Products

duty-freeIt simply means – products you buy free of the above-mentioned duties.

Duty-Free Tip

Just because you’re buying something from such shops, doesn’t mean it’s automatically cheaper than the high street. There have been many reports of airport shops dramatically marking up the costs of items.
To avoid paying over the odds, research the high street cost of the item you’re after before you travel.

*Although we try to stay updated with the latest information, changes in duty-free allowances or security restrictions are on the far side of our control. We cannot be held responsible for any purchases which may be seized, charged or destroyed either throughout transit or at your final destination. Kindly check the country’s official page for taxes and regulation.


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