n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - Is the supply of services in the duty-free area at an international airport in South Africa subject to VAT? : Master Currency (Pty) Ltd v Commissioner for the South African Revenue Services : case note
|Article Title||Is the supply of services in the duty-free area at an international airport in South Africa subject to VAT? : Master Currency (Pty) Ltd v Commissioner for the South African Revenue Services : case note|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Affiliations||1 University of South Africa|
|Publication Date||Jan 2014|
|Pages||515 - 532|
International passengers usually buy luxury goods such as perfume, liquor, electronics, cigarettes, and fashion items at duty-free zones at international airports or boarding ports under the impression that these goods are stripped of all local and international taxes. The hustle and bustle at these duty-free zones should indicate the popularity of the tax incentive (see Frances Cha 'And the world's most lucrative airports are...' (2012) CNN Travel (14 June 2012), available at http://travel.cnn.com/explorations/shop/and-worlds-most-lucrative-airportsare-006206, accessed on 3 July 2013). It is well known that the incentive is based on the perception that the goods so purchased are intended for export and should, as a result, be stripped of local taxes in accordance with the destination principle applied in modern Value-Added Tax systems (see Liam P Ebrill The Modern VAT (2001) 15-16, 179-80).
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