Airport Duty-Free Shopping: How Does It Work?

Duty-free shopping allows travellers to purchase items without paying taxes on them. This is because, when you're in an airport, you've technically technically left the country you're physically in, so that country's laws regarding taxation no longer apply. Duty-free shops are usually located after you pass immigration and security, meaning you have access to them when you're an international traveller.

What is duty-free?

Duty-free shops are retail businesses that sell items without taxes and duties. This is because the items are intended to be taken out of the country where they were purchased, meaning that the country's tax laws no longer apply. Duty-free shops are typically found in international airports, after security or immigration, and are only accessible to international travellers. Items commonly sold duty-free include alcohol, perfume, cigarettes, and chocolate.

Duty-free shops can also be found on cruise ships, but these usually only open once the ship is out at sea, where local tax laws don't apply. To make a purchase, you need to show your boarding pass, which is scanned at the register along with your items. This is to prevent locals who work at the airport or port from buying goods without paying taxes.

In the EU, products purchased between countries are taxable, but items bought while travelling to or from an EU country are duty-refund, and travellers can apply for a refund of the taxes they paid. US Customs duty-free shopping is also subject to different rules, which can be found on the US Customs and Border Protection website.

Who can buy duty-free?

Duty-free shopping is exclusively for people who are travelling internationally. If you are travelling domestically, or if you are an airport employee, you won't be able to take advantage of duty-free shopping. To make a purchase, you need to show your boarding pass, which gets scanned at the register along with your items. This is done to prevent locals who work at the airport from purchasing goods without paying taxes.

Duty-free shops are usually located in the international terminal after you pass immigration and security. This means that, technically, you have technically 'left' the country you're physically in, so that country's laws regarding taxation no longer apply. The same idea applies to airports where you have a connecting flight – you can buy duty-free products in the terminal during your layover because you're in the transit zone.

Some duty-free shops are located in the arrivals terminal, meaning you can stock up on duty-free alcohol or cigarettes when you land in a country that imposes high taxes on these items.

Where are duty-free shops located?

Duty-free shops are located in international airports, usually after you pass immigration or go through security. This means that only international travellers can access them. You can also find duty-free shops on cruise ships and at seaports, although these usually don't open until the vessel is out at sea, where local tax laws don't apply.

In airports, duty-free shops are often located in the transit zone, where you can buy duty-free products during a layover. Some shops are located in the arrivals terminal, so you can buy duty-free alcohol or cigarettes when you land.

What can you buy duty-free?

Duty-free shopping allows you to purchase specific items without paying extra for taxes such as import, value-added and sales tax. This means that duty-free prices are often much lower than typical retail prices.

Some of the most popular duty-free items include alcohol, tobacco, fragrances, confectionery, luxury fashion accessories, electronics, and skincare products. You can also find high-end products such as leather goods at significant discounts.

It's important to note that duty-free restrictions vary from country to country, and there may be limits on the amount of duty-free items you can purchase. For example, most countries allow you to purchase up to 200 to 400 cigarettes, while alcohol purchases are usually restricted based on quantity and alcohol content.

How much can you save?

The amount you can save by shopping duty-free depends on the tax rates of the country you are in and the country you are travelling to. Duty-free shops are exempt from the tax laws of the country they are in, as the items are intended to be taken out of the country. This means that you can save the amount you would have paid in tax on items such as alcohol, perfume, cigarettes, and chocolate. However, it is worth noting that duty-free shops may have higher markups on their products, so you may not always be making a saving.

Frequently asked questions