By Jack M. Mintz
So what is a 鈥渄estination-based tax鈥? It鈥檚 a tax, like a value-added tax (or VAT, our name for which is 鈥淕ST鈥), that is applied to all consumption of goods and services within a country. Goods that are produced in-country but not consumed there 鈥 i.e., exports 鈥 are exempt. But goods produced in other countries that are going to be consumed in-country 鈥 i.e., imports 鈥 are taxed. In sum, everything consumed in the country is taxed, wherever it鈥檚 produced, while things that aren鈥檛 consumed in-country, even if they鈥檙e produced there, aren鈥檛 taxed.