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? : : case note

Volume 26, Issue 2
  • ISSN : 1015-0099
  • E-ISSN: 1996-2185



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 , 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 VAT (2001) 15-16, 179-80).

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