Buying a car for export from CA
May 25, 2011, 3:31 pm
#1
Original Poster
Join Date: Apr 2006
Location: London
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Buying a car for export from CA
Hi all,
Just wondering if I buy a car (a newly restored classic mustang) in CA and have it sent straight to the port for export to the uk, do I have to pay sales tax?
-Is sales tax charged on old vehicles? -I'm not sure if it qualifies since its more a total rebuild.
-and is there a mechanic to reclaim sales tax for foreigners?
The car is already more expensive then some that are already in the uk so the sales tax could actually be a deal breaker on this, especially give the amount of tax I'd have to pay to get it into the uk!
Any thoughts would be handy!
Cheers!
Just wondering if I buy a car (a newly restored classic mustang) in CA and have it sent straight to the port for export to the uk, do I have to pay sales tax?
-Is sales tax charged on old vehicles? -I'm not sure if it qualifies since its more a total rebuild.
-and is there a mechanic to reclaim sales tax for foreigners?
The car is already more expensive then some that are already in the uk so the sales tax could actually be a deal breaker on this, especially give the amount of tax I'd have to pay to get it into the uk!
Any thoughts would be handy!
Cheers!
May 31, 2011, 11:15 pm
#3
Join Date: Sep 2010
Location: SJC
Programs: UA 1K
Posts: 1,628
There is no way for foreigners to reclaim sales tax or other excise taxes from states or the Federal government, a-la VAT refunds.
There are some ways to offset such taxes, if you file tax returns here, but as a visitor, no.
There are some ways to offset such taxes, if you file tax returns here, but as a visitor, no.
Jun 2, 2011, 1:54 pm
#4
Join Date: Mar 2010
Location: LAX
Programs: AA Plat, DL, AS, UA, IHG Plat
Posts: 2,407
This is what the California DMV says about your situation.
http://dmv.ca.gov/vr/export.htm
What I can surmise based on the brief reading:
1. If you buy the car here, you probably need to register in your name first, then apply for export, which means you have to pay sales tax (sales tax collected at the time of sale if purchased from a dealer)
2. To avoid this issue, you probably need to take possession of the car "FOB destination" - meaning that you don't own it until you receive it in the UK. The seller (licensed dealer or broker) here in California has to complete the export forms and arranges shipping. The problem of course is that you have to pay upfront and won't have title when you leave. It's a bit risky.
3. If you are buying from a private party, you may be on the hook for the sale tax (it's actually an excise tax) but if you are not a California resident, I'm not sure how you report it... maybe you don't and everyone "forget" about it.
My final take on this? You should speak to a car broker in UK that has done this before.
http://dmv.ca.gov/vr/export.htm
What I can surmise based on the brief reading:
1. If you buy the car here, you probably need to register in your name first, then apply for export, which means you have to pay sales tax (sales tax collected at the time of sale if purchased from a dealer)
2. To avoid this issue, you probably need to take possession of the car "FOB destination" - meaning that you don't own it until you receive it in the UK. The seller (licensed dealer or broker) here in California has to complete the export forms and arranges shipping. The problem of course is that you have to pay upfront and won't have title when you leave. It's a bit risky.
3. If you are buying from a private party, you may be on the hook for the sale tax (it's actually an excise tax) but if you are not a California resident, I'm not sure how you report it... maybe you don't and everyone "forget" about it.
My final take on this? You should speak to a car broker in UK that has done this before.
Last edited by bzcat; Jun 2, 2011 at 2:05 pm
Jun 2, 2011, 2:17 pm
#5
Join Date: Jan 2010
Location: NYC
Programs: AA Exec Plat, Hilton Diamond, Hyatt Globalist, Bonvoy Platinum
Posts: 151
Recently I have helped purchase three cars for friends living oversees. The following has been my expereince.
2 cars purchased from private individuals 1 car from a dealership
Purcahsed in the states of NY and CT
In all cases, the purchasers have been foreign nationals (non US residents).
1: payment made
2: purchase agreement executed
3: title signed over to the new buyer
4: car towed (in 1 case driven by the previous owner - not recommended) to the freight forwarder.
5: shipping documents along with title submitted to shipper
6: car loaded into container, cleared customs and shipped to Europe
In my experience, the requirement to pay state sales tax applies only to vehicles being registered. As far as I understand, registration of vehicle is not required for export. A signed title matching the shippers name is all that is required.
I hope this helps. My knowledge in these matters is fairly limited, I'm sure someone with more experience will come along and correct me if necessary
2 cars purchased from private individuals 1 car from a dealership
Purcahsed in the states of NY and CT
In all cases, the purchasers have been foreign nationals (non US residents).
1: payment made
2: purchase agreement executed
3: title signed over to the new buyer
4: car towed (in 1 case driven by the previous owner - not recommended) to the freight forwarder.
5: shipping documents along with title submitted to shipper
6: car loaded into container, cleared customs and shipped to Europe
In my experience, the requirement to pay state sales tax applies only to vehicles being registered. As far as I understand, registration of vehicle is not required for export. A signed title matching the shippers name is all that is required.
I hope this helps. My knowledge in these matters is fairly limited, I'm sure someone with more experience will come along and correct me if necessary
Jun 2, 2011, 3:35 pm
#6
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,856
I am pretty sure there is a way to get a temporary permit good for a few days/weeks that will allow you to export the car without ever paying the sales tax. I tried to search the DMV website for more detail but right now it's down -- sounds like business as usual at the DMV!
Edited to add: The site is back up. There isn't a lot of wisdom I can find about this but there is a chance that if the seller goes with you IN PERSON to the DMV you might be able to get away with it. Take a look at http://www.dmv.ca.gov/vr/export.htm
Edited to add: The site is back up. There isn't a lot of wisdom I can find about this but there is a chance that if the seller goes with you IN PERSON to the DMV you might be able to get away with it. Take a look at http://www.dmv.ca.gov/vr/export.htm
Last edited by RichardInSF; Jun 3, 2011 at 12:09 am