Additionally, most European countries permit duty-free sales to foreign citizens in normal stores under the right conditions (often via requiring a passport to be shown at purchase, and via refunding the taxes at airport when leaving the country). This arrangement works because, it's generally required that travelers pay customs on arrival to their home countries on goods purchased abroad anyway. That being said, I've just learnt that the UK has killed their duty-free sales system as of 2021 [1], which is just stupid.
[1] https://www.executivetraveller.com/news/uk-to-axe-duty-free-...