Is buying duty free actually cheaper?

Holiday season is here, and millions of us will be jetting off to hot and sunny destinations over the next couple of months as the summer kicks into high gear.

Of course, with the cost of living crisis still impacting daily life, we’ll also be looking for ways to save money as we take our breaks – whether that’s by changing where we go, switching the type of holiday we take or just setting ourselves a strict spending money budget.

And one place we’re always looking to bag a bargain is in the duty free shop of the airport – picking up such tax-free treats as alcohol and perfume before we’ve even stepped on board the plane.

Duty free is often regarded as being a money-saver – but what is it, exactly, and is it really a cheaper way of stocking up on your booze and fragrances?

Here’s what you need to know…

What is duty free?

Duty free simply means purchasing an item in certain circumstances – such as an airport shop – without paying sales or import tax, VAT or any other taxes on it, on the basis those goods will be taken out of the country and used elsewhere.

Under normal circumstances you’re expected to pay these taxes on anything you buy – but if you’re shopping in a place such as an airport terminal, a cruise ship or onboard an airline you’re regarded as being in ‘no man’s land’ – meaning the usual rules of taxation don’t apply.

This means the goods you are buying are exempt from these charges – so technically you save money.

What are the rules of duty free?

The rules vary depending on where you are in the world.

For example, if you’re travelling between EU countries goods purchased between countries are taxable – but if you’re travelling to or away from an EU country you can apply for the taxes on those products to be refunded.

There is also a limit on how much you can buy of certain items, such as certain types of alcohol, or cigarettes and other smoking products.

Is duty free cheaper?

Whether or not duty free is cheaper largely depends on what it is you’re buying.

There are certainly deals to be had on some items, such as alcohol – for example, at the time of writing a one-litre bottle of Bombay Sapphire gin can be bought at World Duty Free for £18.69 while the same bottle would cost you £28.50 at Tesco.

Perfume and fragrance can also work out cheaper – a 50ml bottle of Marc Jacobs Daisy can be bought at World Duty Free for £54.90 compared to £59.50 at Boots.

Other products, such as Jo Malone’s Lime, Basil and Mandarin Home Candle will cost you £44 in duty free – but you can expect to pay £55 for the same size (200g) in John Lewis.

However other products might not necessarily represent quite such a saving – particularly when it comes to shopping online.

A pair of sunglasses from Eyewear by David Beckham, for example, are currently on sale at World Duty free for £162.50 – which comes in cheaper than some places, for example Amazon who are selling the same pair for £194.

However, Shade Station, the UK’s largest independent online sunglasses, glasses and watch retailer, is selling the same pair for £136.50, at time of writing.

So, as with everything, it pays to shop around. Lucinda O’Brien, from Money.co.uk Savings told metro.co.uk: ‘Different items are taxed at different prices so it may be worth seeking out those which are usually taxed the highest, as you’ll have a better chance of getting a bargain with these.

‘Some other great duty free items to buy that are commonly the best value for money include chocolate, perfume and cosmetics. 

‘Of course, if you’ve been keeping your eye out for a certain product that you see at a discounted price, then it makes sense to make the purchase.

‘However, unfortunately it’s not that simple as in some cases prices may be higher to start with, so even though it looks like you’re getting a discount you may not be.’

Her advice on how to make sure you’re getting a bargain is to check how much the same product would cost if you bought it outside of duty free.

“If it’s still cheaper to buy it abroad, make sure you check you’ve calculated the currency correctly. Then check your personal allowance for bringing the item back into the country.

“If you have to declare it and pay tax on it, this will obviously add to the price. If it pushes it up past the amount you’d pay for it at home, it’s not worth it.”

How much duty free can you bring into the UK?

According to the Government website the limits on duty free are as follows:

• beer – 42 litres
• wine (still) – 18 litres
• spirits and other liquors over 22% alcohol – 4 litres or sparkling wine, fortified wine (for example port, sherry) and other alcoholic drinks up to 22% alcohol (not including beer or still wine) – 9 litres (you can split this allowance and bring in half of each)
• 200 cigarettes
• 100 cigarillos
• 50 cigars
• 250g tobacco
• 200 sticks of tobacco for electronic heated tobacco devices (such as vapes)
• £390 of other goods (such as fragrances, chocolate and other food items etc)

If you go over this allowance you would have to pay duty on the entire amount, not just the excess – so this is something to bear in mind when shopping.

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