After countries go thru all the trouble of taxing imports, why then would they allow ppl to just buy whatever they want duty free? Why do these shops exist? What benefit do they serve? And why are they only at airports?
In: 390
Most tax systems don’t levy taxes on goods that are going to be exported. Doing so places them at a disadvantage to goods from other companies. Why would someone buy an imported widget that is artificially more costly than it needs to be?
Similarly, there are countries where, on your way out, you can get a refund of at least some of the VAT you paid while there, as long as you can substantiate it. Japan is an example of a country with duty-free shops outside the airport. If you drop a lot of yen at certain stores and show them your passport, they will lop off the VAT.
Latest Answers