So that the traveLler does not pay the tax twice. Duty free shops cater to these "leaving customers". These duty-free items can only be purchased when departing from a country or when crossing into another territory. They are for export only and must be taken out of the country where they are purchased.
Can Americans use the duty-free?
They also limit the amount of money you can spend on international purchases without being charged a duty tax. Currently, Americans can spend up to $800 within 31 days without being taxed for their purchases, according to the U.S. Department of Homeland Security.
Why is Tenerife duty-free?
How does duty-free work in Europe?
Duty-free shopping allows travelers to purchase items without paying tax on them. In the EU, products purchased in-between countries are taxable, but items you buy while traveling to, or away from, an EU country are duty-refund, and travelers can apply for a refund of the taxes they paid on such products.
Do you have to declare duty-free at US Customs?
Travelers should declare all items being brought from abroad that will remain in the United States. This includes gifts and duty-free purchases. Goods purchased in a duty-free shop are not automatically free of duty upon your return to the United States.