Who is exempt from retail sales tax?Dealers may sell vehicles or trailers to the following types of customers without collecting retail sales tax:.Nonresidents of Washington, including persons from other countries. See.Nonresident military personnel who are temporarily stationed in Washington.
Ready to sell motor vehicles in Oregon? Starting an auto dealership in the state means that you need to obtain an Oregon dealer license from the Oregon Department of Motor Vehicles, as well as an Oregon auto dealer bond.In this way, you can operate legally by complying with all relevant rules. If you buy or sell wholesale or retail in Oregon and the goods or items bought or sold are taxable, you need a Reseller License or Wholesale License. If you will hire employees you are required to obtain a federal tax id number (Employer Identification Number EIN) as well as a state Tax Id Number as well (for Oregon ).
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See.ICC carriers with authority to transport across the state's boundaries. See.Native Americans and their tribes. See.The United States Government.
See.Foreign Governments and diplomats. SeeSpecific conditions requiredThere are specific conditions that must be met in order for these sales to be exempt from retail sales tax. Certain affidavits are required to document that the customers have qualified for the sales tax exemption. These affidavits should be retained as permanent records subject to audit.Contradictory informationDealers must exercise good faith and a degree of care when taking affidavits. Other contradictory information in a customer's file may negate the exempt status of the sale. Contradictory information could include financing applications, credit bureau information, or other documents that show that the customer is a Washington resident.Example: A customer claims to be an Oregon resident and purchases a new vehicle at a Washington dealership.
The Oregon resident shows an Oregon driver's license, an Oregon fishing license and has a post office box mailing address in Oregon which matches the driver's and fishing licenses. The down payment is made with a check from a local bank and that same bank will be the lien holder on the vehicle. There is good cause to check further to be sure the customer is actually an Oregon resident. Additional proof, such as Oregon income tax returns, Oregon voter's registration and a physical address in Oregon should be requested.Methods allowing tax exemptionTrip Permit - The vehicle or trailer must leave the dealer's premises under the authority of a trip permit. An affidavit must be used when this method is used.
If the vehicle or trailer has valid Washington plates, the plates must be removed prior to final delivery. Records must be kept showing disposal of the removed plates. Trip permits may be obtained from field offices of the, or other agents appointed by the department, accompanied by a.Nonresident License Plates - The vehicle must leave the dealer's premises with license plates issued by the state of residence of the customer, or in the case of military personnel, a 45-day permit, also accompanied by a.Out of State Delivery - The vehicle or trailer must be delivered to the customer outside Washington. It cannot be licensed or titled in Washington nor can it have valid Washington plates attached at the time of final delivery. Use the.Delivery Shipside - The vehicle or trailer must be delivered to shipping terminals for delivery to persons who reside in non-contiguous states. It cannot be licensed or titled in Washington nor can it have valid Washington plates attached at the time of final delivery.U.S. Government - The dealer must have documentation that the sale was to the United States government and was paid for by government voucher.Foreign Governments Diplomat - A copy of the diplomatic exemption card must be kept in the dealer's records.AffidavitsCopies of affidavits may also be found in.
There is no specific affidavit for sales to the government or for sales to persons with diplomatic cards. The affidavits must be taken at the time of delivery.
They will not be accepted by the Department, if received after the fact.B&O and retail sales taxSales with delivery out-of-state are allowed a deduction under both B&O and retail sales tax. Sales with trip permits, nonresident license plates, delivery shipside, sales to US government, and foreign diplomat sales are allowed a deduction under retail sales tax only.Forms & References(To be completed by the buyer when the vehicle is delivered to the buyer within Washington State) (pdf)(pdf)(To be completed at the time of delivery by the person who delivers the vehicle to the buyer) (pdf).