Duty Free, what is it and how does it work?
Good morning! Today from Venerable Capital , specialists in marketing and distribution , we solve all your doubts about Duty Free stores, what they are, how they work, what they sell…
What is Duty Free?
Duty Free stores are retail stores free of local and national taxes and duties. They are usually located in the international area, both at airports and seaports. But you can also find them on board airplanes or ships, or at the borders of some countries.
In addition to selling duty-free products, Duty Free shops often offer lower prices than conventional stores. This is because the suppliers of the products offer them special prices due to the large volume of sales they handle. Thus, shoppers can purchase everything from perfumes and liquors to electronics and fashion accessories at significant discounts. However, it is important to keep in mind that there are restrictions on the amount of products that can be purchased in these establishments, since they are intended exclusively for personal use and not for commercial purposes.
The history of Duty Free shops dates back to the 1940s, when Irish businessman Brendan O’Regan opened the first Duty Free store at Shannon Airport in Ireland. The idea was to offer travelers passing through the airport the opportunity to buy goods without having to pay taxes and duties, thus saving shoppers money. This innovative idea quickly spread to other airports and seaports around the world, making duty free an integral part of the travel experience for millions of people. Today, Duty Free is an ever-growing industry, with sales exceeding billions of dollars each year.
What is sold in these stores?
These establishments usually sell products associated with high taxes . As in the case of some alcoholic beverages or tobacco. Other classics of these sites are perfumes, electronic devices, watches, sunglasses and various souvenirs.
Why are they tax free?
These stores are physically located in one country, but financially or for tax purposes they occupy an international territory . This is because countries tax the products that enter their territory, but Duty Free customers are people who leave it, since in order to buy, you have to show your passport and boarding pass.
How can you shop at Duty Free?
The tax exemption that these venues have is reserved exclusively for people who make international trips . Therefore, to make a purchase in these stores, you must have a boarding pass to prove this condition. 
Things you should know
European Union eliminated Duty Free products (although you can buy VAT-exempt items). Therefore, you can only purchase tax-free products if you travel to or from a non-EU country.
Beware of exceeding the allowed amount of merchandise! If you exceed the amount allowed to enter your country, customs will charge you for these “excesses” that are not considered gifts or objects for personal use. So be well informed about the existing regulations.
In the Venerable Capital group we have Alquezar FZE and COMET GHANA LTD , companies that are dedicated to Duty Free sales in Dubai and Ghana, respectively. If you want to know more contact us and we will help you as much as possible.
