Destination principle

The destination principle is a concept of international taxation which allows for value added taxes to be retained by the country where the taxed product is being sold.[1] They are collected on imports and rebated on exports.

This principle also is applied to the Goods and Services Tax of several countries like India.

References

  1. ↑ Destination Principle Deardorffs' Glossary of International Economics Retrieved on 1 October 2010