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HOT TOPICS
2016
MEMBERSHIP
DIRECTORY
58
PROTECT YOUR EXPORT DEALS FROM NEW YORK
STATE SALES TAX
The following will help you avoid tax assessments or penalties in connection with exported vehicles on
which sales tax was not paid.
•
Dealer must arrange transport of the vehicle to the port for shipment out of the country.
•
Purchaser cannot have possession, use, or control of vehicle at any time. The purchaser should not
register the vehicle or obtain insurance on the vehicle.
•
Dealer must obtain and retain Form DTF-820 or other affidavit, statement or evidence that supports
compliance with the requirements for exemption from sales tax.
•
Dealer must not have any information or any documents in the deal jacket that contradicts information
provided by the purchaser with respect to the affidavit or statement regarding eligibility for exemption.
•
The back of the MSOmust be completed along with an MV-50 and the appropriate entry recorded in the
Police Book.
•
Retain a copy of a completed and signed bill of lading in the deal jacket which specifies the final
destination outside of the country.
By following the above guidelines, the dealer will have evidence that the sale was not subject to New
York State sales tax. Variations in the facts and circumstances of each deal should be carefully reviewed to
ascertain whether those variations are substantive enough to cause sales tax to be imposed in the event of
an audit. Consultation with the dealer’s accountant in those circumstances is strongly encouraged.
Improperly exporting new vehicles may also subject you to chargebacks of incentives and promotions from
your manufacturer.
•
Export vehicles only when allowed
by your franchise agreement
(generally manufacturers’ sales
and service agreements prohibiting
the export of new vehicles).
Nothing
contained
herein
constitutes
professional advice or is intended to be
relied to avoid tax penalties. Speak to your
accounting or legal professional for specific
advice on these matters.