Estimated Tax Forms

Oct 12, 2008 28 Replies

Purchases at duty-free shops are presumed to be purchased for use in a foreign country -- since in order to buy duty and tax free, you must be leaving the US, generally for at least 48 hours. If you bring your purchases back to your home state on your return to the US for use there, you're generally subject to the use tax, since you didn't pay sales tax on the original purchase.

The duty-free stores generally won't tell you that.

Katie

In this case, the foreign country would be the USA as the purchases were being made on return to the USA. As for the duty-free stores not informing you, they are not in the business of providing legal advice

- they are selling a product. 'sides, they can not be expected to know the rules for every country.

Well, I think it would be kind of nice if the duty-free shops IN THE US were to post a sign or something warning customers that purchases brought back into the US could be subject to use tax in the customer's home state. But you're right, it's not their job, and I didn't mean to imply that it was.

Katie

Only citizens of countries other than the USA may make purchases in duty free shops in the USA. When I return from abroad, like last Saturday night, there was no way I could have accessed those shops. But any "duty free" purchases on the Delta flight back from Athens would, like all other foreign purchases, be subject to use tax here at home. By the time of that flight, however, I already had my quota of good Scotch whiskey!

ChEAr$, Harlan

Not that I've noticed (but I can only make purchases when leaving).

Seth

Harlan, you can buy from the DF shops in US airports on the way OUT of the US. You're right, though, on the way back in you have to use the shop in the foreign airport or on the plane.

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Katie

If it's Scotch then it's whisky, not whiskey. :)

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ah, quite right about when leaving. But who would want to lug all that Scotch whisky to a foreign country and cart it about before returning? Unless of course it gets drunk along the way. Hmmmmm.... Ah, yes! And to think I packed me own bottle in my suitcase this last time to have it on board ship. I'll try to remember that for next year's cruise.

ChEAr$, Harlan Lunsford, EA n LA

that was pointed out to me privately, and of COURSE I knew that. Just that fingers get ahead of the brain at times when suffering from jet lag.

ChEAr$, Harlan Lunsford, EA n LA

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