I believe at least there are two “important” signs that are “Tax Free” and “Duty Free” in the shopping areas in almost all international airports and seaports around the globe.
You might be know the different between Tax Free and Duty Free terms. Tax free refers to exemption of consumption tax only.
Duty Free is exemption for several taxes, such as sales, value-added, import and other relevant taxes.
Hence, if we buy the same items (same store, brand, year production and the same quality) will be significantly cheaper with duty free than tax free only.
Sure, duty free items could entice international travelers more for shopping within port’s stores.
In our state, Louisiana, we have tax free shops in certain outlets and malls for international tourists.
First, the shops include consumption tax in price of each items. Then, after shopping, the tourists may claim their tax.
Assigned office for tax claim is located at the corner of the mall or the outlet complex (area).
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