Destination principle

Tax Glossary Definition

Destination principle

The destination principle is a key concept in value-added tax (VAT) and similar consumption-based tax systems. It stipulates that tax is levied in the country or jurisdiction where goods or services are consumed, rather than where they are produced. This approach ensures that tax revenue benefits the place of consumption, aligning taxation with final use rather than origin.

Example: If a product is manufactured in India but sold to a customer in France, the applicable VAT is charged in France, since the consumption of the product occurs there.

India's Most Trusted
Pro Tax Filer

Discover why we're one of India's most trusted Pro Tax Filers, built on a foundation of accuracy and reliability.

  • We ensure maximum tax benefits.

  • Taxes? Handled by our CAs and experts.

  • Reliable, year-round tax support at no cost.

  • Satisfaction or your money back came twice.

Start Filing

Scan the QR code to Download the app

Mobile App Available on:

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App

Have Questions? Let’s Talk!

Chat With Us

Scan to chat

Scan QR Code

OR
Start Chat
Mobile Apps Available On
This feature is available on our mobile app. Get the app now to access this feature!

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App