2015 GNYADA MEMBERSHIP DIRECTORY

HOT TOPICS 2015 GNYADA Membership Directory

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 continued 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 contradict 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 dealer 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.

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