Duty-free shopping is a familiar term for anyone who travels regularly or has ever visited an international airport. The ability to purchase various goods, such as perfume, alcohol, chocolate and much more, tax-free is often a tempting offer for many travelers.
What does duty free mean?
The history of duty-free shops goes back to the 1940s. The Irish Dr. Brendan O’Regan founded the first duty free shop at Shannon Airport in Ireland. He came up with the idea of offering tax-free goods to passengers waiting for stopovers.
The term “Duty-Free” comes from English and literally means “duty-free”. In the context of airports, it refers to special retail stores that can sell their goods without the usual taxes such as VAT or import duties, N26 said in an online article. These shops are usually located in so-called transit or customs areas of international airports, which are outside the customs territory of the respective country.
The range of duty free shops varies depending on the location, but usually offers a wide range of products. These include perfumes and cosmetics, spirits and tobacco products, sweets and food, electronics, watches and jewelry, fashion and accessories, and toys. Renowned brands and luxury items are often offered.
Why you have to show your boarding pass
A key aspect that often causes confusion when shopping duty free is the need to show the airline ticket – often in the form of a boarding pass. The main reason for this requirement has to do with legal regulations and the requirements of the tax authorities.
The operation of duty-free shops requires retailers to provide individual proof of their travel destination to the tax authorities. This proof is provided by scanning the boarding pass. The goal here is to determine whether the passenger is entitled to purchase goods duty-free, according to reisereporter.de in an online article. In this context, the boarding pass serves as a recognized document.
The approach is based on the principle that the customer’s choice of products, coupled with his travel destination, forms the basis for the taxes and duties to be paid by the retailer, reports reisereporter.de. This important factor is documented during the payment process by showing the boarding pass. As a result, the taxes the government receives on duty-free items sold are based on the passenger’s destination.
Editorial team finanzen.net