Destination principle
Encyclopedia
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. 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
.
International taxation
International taxation is the study or determination of tax on a person or business subject to the tax laws of different countries or the international aspects of an individual country's tax laws. Governments usually limit the scope of their income taxation in some manner territorially or provide...
which allows for value added taxes to be retained by the country where the taxed product is being sold. They are collected on imports and rebated on exports.
This principle also is applied to the Goods and Services Tax
Goods and Services Tax
A goods and services tax or value added tax is a tax on exchanges.By country:*Goods and Services Tax *Goods and Services Tax *Goods and Services Tax *Goods and Services Tax...
of several countries like India
Goods and Services Tax (India)
The Goods and Services Tax is a value added tax to be implemented in India by April 2012. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments...
.