The Destination Principle: Past Developments and Future Challenges

GST IN AUSTRALIA: LOOKING FORWARD FROM THE FIRST DECADE, C. Peacock, ed., Thomson Reuters, pp. 313-341, 2011

Presented at GST in Australia: Looking Forward from the First Decade, RMIT, Melbourne, 17-18 November 2010

Sydney Law School Research Paper No. 12/33

29 Pages Posted: 28 Apr 2012  

Rebecca Millar

The University of Sydney Law School

Date Written: April 27, 2012

Abstract

This paper, presented at a conference in 2010, examines the cross-border rules in the Australian GST. Part 1 (2000 to 2009) covers the initial design of Australia’s destination principle rules, early case law questioning whether GST was payable by foreign tour operators selling holidays in Australia, legislative changes made in response to that case law, and the review of the cross-border rules undertaken by the Australian Board of Taxation in response to the work of the OECD on the International VAT/GST Guidelines. Part 2 (2010) comments on the Board of Taxation’s recommendations and discusses Travelex, a case in which the High Court of Australia concluded that foreign currency services consumed in Australia were not taxable because they were ‘exported services’. Part 3 (2011 and beyond), discusses how the Board of Taxation recommendations might be implemented, considers how the Government should respond to the Travelex decision, and calls for a more active interest in the work of the OECD.

Keywords: VAT, GST, Cross-border VAT/GST, Australian GST, International VAT/GST

JEL Classification: K10, K30, K33, K34

Suggested Citation

Millar, Rebecca, The Destination Principle: Past Developments and Future Challenges (April 27, 2012). GST IN AUSTRALIA: LOOKING FORWARD FROM THE FIRST DECADE, C. Peacock, ed., Thomson Reuters, pp. 313-341, 2011; Presented at GST in Australia: Looking Forward from the First Decade, RMIT, Melbourne, 17-18 November 2010; Sydney Law School Research Paper No. 12/33. Available at SSRN: https://ssrn.com/abstract=2046876

Rebecca Mescal Millar (Contact Author)

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

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