What is duty free?

Question

I need to find out a couple of information for an interview and was jsut wondering what duty free was, so i was ready for the answer when they ask me that question in my interview fot norwich airport. For my apprentiship. Thank-you!

Answer 1

Duty Free means Tax free. Duty free shops don't have to pay the tax on the products they sell to the countries the shops are in. This is suppose to reduce the price of these goods, although this is not always the case.

Answer 2

Your continued donations keep Wikipedia running! Duty (economics)
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This article is about a tax measure. For the ITV sitcom, see Duty Free (sitcom).
In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. Properly, a duty differs from a tax in being levied on specific commodities, financial transactions, estates, etc., and not on individuals; thus it is right to talk of import duties, excise duties, death or succession duties, etc., but not of income tax as being levied on a person in proportion to his income.

Duty-free is the term that is often used to describe goods bought at ports and airports that do not attract the usual government taxes and customs duties.

Some countries impose allowances in order to restrict the number of Duty-free items that one person can import into the country. These restrictions often apply to tobacco, wine, spirits, eau de toilette, gifts and souvenirs.

But in some entities, such as Hong Kong, "duty free" becomes meaningless as they do not impose any sales tax or custom duty on any goods except tobacco and alcohol.

A tariff is a tax on foreign goods upon importation. Duties and tariffs are both forms of taxation.


[edit] See also
Tariff
Free economic zone
Free port
Duty-free shop
This economics or finance-related article is a stub. You can help Wikipedia by expanding it.

Retrieved from "http://en.wikipedia.org/wiki/Duty_%28economics%29"
Categories: Taxation | Commercial item transport and distribution | Economics and finance stubs

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This page was last modified 19:11, 21 June 2007. All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.)
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Privacy policy About Wikipedia Disclaimers added when it is duty free.

Answer 3

Duty is VAT...Value Added Tax.

When a shop/outlet is considered not to be 'in the UK' if you like, you do not pay VAT.

It's tax free.

Answer 4

They dont charge any tax on it...just the cost of the product plus profit.

Answer 5

No tax.