sales tax exemption question
Discussion
VAT
Value added tax (VAT) is tax on exchanges. It is levied on the value added that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason VAT is neutral with respect to the number of passages that there are between the producer and the final consumer.
VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). To avoid double taxation on final consumption, exports (which are, by definition, consumed abroad) are usually not subject to VAT or VAT which led to such consequences is refunded....
if a vehicle is bought at a US dealer, to then be immediately exported, could i claim the sale tax component of the sale cost back from the US government?
Value added tax (VAT) is tax on exchanges. It is levied on the value added that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason VAT is neutral with respect to the number of passages that there are between the producer and the final consumer.
VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). To avoid double taxation on final consumption, exports (which are, by definition, consumed abroad) are usually not subject to VAT or VAT which led to such consequences is refunded....
if a vehicle is bought at a US dealer, to then be immediately exported, could i claim the sale tax component of the sale cost back from the US government?
Not 100% sure, but sales tax is paid to the local county tax assessor/collector on registration of the vehicle so if you buy from a dealer/private and do not register the vehicle in the USA then you shouldn't pay sales tax at all.
That's my thinking on the subject, but like all US tax stuff it's never that simple.
Anyone else have an insight into this matter?
That's my thinking on the subject, but like all US tax stuff it's never that simple.
Anyone else have an insight into this matter?
Sales tax is a State thing.
If I buy a car out of state I do not pay sales tax in that state whether it's from a dealer or private.
If I buy a car from a dealer in my state (New Jersey) the dealer is registered for sales tax so I pay the sales tax to him.
If I buy a car for 10,000 but have a trade in of 5,000 I will only pay sales on 5,000.
If I buy a car from a private party for 10,000 I will pay sales tax on 10,000 when I register it.
I've heard that some people lie about the cost of a car !!!!!!
Sales tax in NJ is 7% most othe states are in the 5-7 range except Delaware which is 0%.
So any dealer that exports would not charge you sales tax
But the change the laws all the time (esp sales tax)
If I buy a car out of state I do not pay sales tax in that state whether it's from a dealer or private.
If I buy a car from a dealer in my state (New Jersey) the dealer is registered for sales tax so I pay the sales tax to him.
If I buy a car for 10,000 but have a trade in of 5,000 I will only pay sales on 5,000.
If I buy a car from a private party for 10,000 I will pay sales tax on 10,000 when I register it.
I've heard that some people lie about the cost of a car !!!!!!
Sales tax in NJ is 7% most othe states are in the 5-7 range except Delaware which is 0%.
So any dealer that exports would not charge you sales tax
But the change the laws all the time (esp sales tax)
Edited by jeff m on Monday 15th January 01:57
thanks for the info!
thinking if i buy the car at $45000, tax (say 6%)= $2700
=> car cost (on presenting at UK customs, before thinking about shipping costs) = $42300
x1.1 uk import duty
x1.175 uk vat
total = $54763
without deducting sale tax:
total = $58163.....$3459 more!
anyone know if the dealer wouldn't charge me the sales tax in the first place or if i could only claim it back off the state at a later date?
thanks!
thinking if i buy the car at $45000, tax (say 6%)= $2700
=> car cost (on presenting at UK customs, before thinking about shipping costs) = $42300
x1.1 uk import duty
x1.175 uk vat
total = $54763
without deducting sale tax:
total = $58163.....$3459 more!
anyone know if the dealer wouldn't charge me the sales tax in the first place or if i could only claim it back off the state at a later date?
thanks!
jeff m said:
It should be an "exempt sale"
In which State in the dealer?
And wotcha gettin ?
In which State in the dealer?
And wotcha gettin ?
Edited by jeff m on Tuesday 16th January 04:21
well . . . . . .
don't know which state (took 6% as a likely figure from the info above) but guess it'd be best to look along the eastern and southern seaboard states to minimise travel/transport-to-port costs . . . . (not that i wouldn't have an amazing time driving to port, that is! . .
.
. . . in a Viper! (see my profile
) would be extremely tight to 'go for it now' so looks like i've gotta hang on a while yet . . just watching the uk interest rates creep higher
and hoping the $-£ rate holds / gets even better! so while i've got the time i'm sniffing out all (legal....so far!) cost reducing tricks!
(anyone returning / moving to the UK in 7mths???
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