Am I responsible for collecting sales tax on car sale?

[vintagecarlover]

Am I, as a hobbiest supposed to collect sales tax for a project car leaving the U.S. into canada? I sold a project and filled out bill of sale as I've always done and someone at the border is asking another form be filled out with a space for Georgia sales tax? Anyone with experience here? Naturally tax wasn't collected but do I need to collect and pay this? Don't feel comfortable using an official state of ga bill of sale form with a space for tax due when they were never collected. Thx for any help. Regards. Mark

Ps. Before I get blasted I'll pay tax if due when I collect it. Not trying NOT to pay. Just asking am I suposed to?

[OffCamber00]

Should be responsibility of buyer. Whenever I buy a used car, the DMV collects sales tax when I register the title.

[Neel]

Originally Posted by OffCamber00

Should be responsibility of buyer. Whenever I buy a used car, the DMV collects sales tax when I register the title.

Same holds true here...

[OsoMoore]

I had a fun game where I needed license plates (to drive the car back from NC to Wisconsin) but couldn't get plates for a car I didn't yet own. So they had me fill in a doc for a plates transfer for my other car's plates, and carry it with me, even though there was no intent to eventually file the document.

They said I could show it to police along the way, but tear it up when I got home.

More on-topic, you may be able to find out by checking with the Canada's BMV equivalent.

[ossiblue]

Originally Posted by OffCamber00

Should be responsibility of buyer. Whenever I buy a used car, the DMV collects sales tax when I register the title.

Same as this^^in California as well. Tax is collected upon registration by the buyer unless it can be shown a tax was paid, out of state, when the car was purchased. If the tax was paid upon purchase, California doesn't collect the tax. This may be what you are seeing. If Canada collects a sales tax upon registration, they may want to know if the buyer already paid it in Georgia. In either case, it is not up to the seller to collect and pay the tax unless your state does require that in a private sale.

[vintagecarlover]

The buyer says that US side rejected our bill of sale that we wrote up, dated and signed. Said they wanted a form filled out from state of ga website which clearly has a sale price and tax area. It just made me nervous thinking I'm responsible for 800. Ga sales tax. I called them and am waiting nervously in query. Thx all

[Last911]

AFAIK, the buyer in Canada has to pay import duty (6%) and 5% GST on sale price. If you write in a legit sale price, there is no worry.

Also you don't have to pay tax. But, if you made money on the car, you will have to file it as 'income' in your income tax return (just no cost to export a vehicle from the US to Canada).

And if he's importing the car to Canada. The US side cares very little about how much it cost. They are there to check the title, make sure it has no liens on it, and make sure it's not stolen (and verify status). The Canadian side is the one that cares about sales price etc.

So something is not adding up here.

[ossiblue]

Originally Posted by vintagecarlover

The buyer says that US side rejected our bill of sale that we wrote up, dated and signed. Said they wanted a form filled out from state of ga website which clearly has a sale price and tax area. It just made me nervous thinking I'm responsible for 800. Ga sales tax. I called them and am waiting nervously in query. Thx all

Sounds to me like they (border check) wanted an official state form for a bill of sale and you had a homemade form. If that's the case, then it doesn't matter if the tax part of the form has an amount or not. It's there because it's a standardized form that is used for all sales/purchases in Georgia.

[Matt Monson]

Originally Posted by vintagecarlover

The buyer says that US side rejected our bill of sale that we wrote up, dated and signed. Said they wanted a form filled out from state of ga website which clearly has a sale price and tax area. It just made me nervous thinking I'm responsible for 800. Ga sales tax. I called them and am waiting nervously in query. Thx all

That's the buyer's liability, not yours. I ship overseas almost daily and the ups shipping documents have a check box for taxes paid be shipper or taxes paid by recipient. Unless you collected the GA tax from the buyer you don't pay it.

The buyer should go to his DMV and see if it needs to be paid before entry or if he can pay when he registers.

[JohnJL]

No you are not. Your Canadian buyer will pay it to the mounties at the border.

[Last911]

Originally Posted by JohnJL

No you are not. Your Canadian buyer will pay it to the mounties at the border.

No mounties at the border They are CSBA - Canada Tax/Revenue agents.

They call the Mounties if anything goes wrong.

[cabmandone]

Didn't read all the replies but being for export I'm assuming it's shipping by common carrier and wasn't picked up by the buyer. In "most" states there would be no sales tax collected and in a private party transaction it's normally up to the buyer to pay the sales tax when the car is registered in their name. What broker are they using to get it across the border?

Do a quick read on exemptions. I bought a lot of skid steers out of Georgia and normally as long as I didn't take possession in GA no tax was collected as it was an out of state purchase. The buyers broker should handle GST and whatever else is applicable upon entry into Canada.

[MDamen]

I think the US side just wants to make sure it isn't stolen. They are looking for some paperwork showing it was legitimately sold.

[cabmandone]

Originally Posted by MDamen

I think the US side just wants to make sure it isn't stolen. They are looking for some paperwork showing it was legitimately sold.

The thing is, I think on vehicles there's a 72 hour clearance time where the broker is supposed to submit the papers to the border prior to crossing. The broker should have known the paperwork wasn't adequate to get the car over the border.

vintagecarlover,
Did you send a copy of the Title with the B.O.S?

[JohnJL]

Originally Posted by Last911

No mounties at the border They are CSBA - Canada Tax/Revenue agents.

They call the Mounties if anything goes wrong.

I havent found one I like yet.


Like how about the time I emailed and got confirmation of it not being a problem to import a roller as a car. Get to the border and Patrice decides since it has no engine or trans that its not a car. Despite being exported as a car 200 meters fown the road on the US side and wih emails in hand from his CBSA central office pre-admitting it.

Wankers. All of them.

[porschenut]

You could just report the sales price being $800 less than it actually was, and fill out the form with GA sales tax of $800 to satisfy them. For example, if you sold the car for $20k, then report the sales price as $19,200 plus $800 GA tax on the form.

[vintagecarlover]

I understand how paperwork goes. No title. Ga bill of sale only. This was never a surprise and buyer knew this well in advance. I wrote up many copies till broker was happy will bos,

Buyer picked up at my house in ga. Took it to the border and turned it over to a broker.

Deducting 800. From any sales price to add it back in as tax collected. You already sound like a govt employee. geesh!

I kinda know how things work under Murphy's law. It goes something like this, Guy buys a inop car sells to a Canadian. Canadian takes car accross border with papers and some Canadian tax guy says I'll be helping ga by sending a copy back to ga state revenue brothers and whoops, form shows no tax collected so when they can't collect from canuk, whoa heres a djmbass we can bust in the head with interest and penalties plus sales tax to boot.
Come on guys, never seen the movie Deliverence?

[ossiblue]

Originally Posted by vintagecarlover

!

I kinda know how things work under Murphy's law. It goes something like this, Guy buys a inop car sells to a Canadian. Canadian takes car accross border with papers and some Canadian tax guy says I'll be helping ga by sending a copy back to ga state revenue brothers and whoops, form shows no tax collected so when they can't collect from canuk, whoa heres a djmbass we can bust in the head with interest and penalties plus sales tax to boot.
Come on guys, never seen the movie Deliverence?

This doesn't seem to match your situation^^. Don't know if you were being humorous.

You posted, "The buyer says that US side rejected our bill of sale that we wrote up, dated and signed. Said they wanted a form filled out from state of ga website which clearly has a sale price and tax area. It just made me nervous thinking I'm responsible for 800. Ga sales tax. I called them and am waiting nervously in query."

I read this as some bureaucratic clerk in the U.S. wants an official form from the state as evidence of the sale. That form has a space for sales tax because it's a standard form. The U.S. border person has no interest in seeing Ga get it's sales tax, only that the proper paperwork is with the car. IMO, this is a non-issue for you regarding tax liability. It is a trivial technical issue created by a single agent who demands to-the-letter forms as documentation.

[Matt Monson]

Originally Posted by vintagecarlover

I understand how paperwork goes. No title. Ga bill of sale only. This was never a surprise and buyer knew this well in advance. I wrote up many copies till broker was happy will bos,

Buyer picked up at my house in ga. Took it to the border and turned it over to a broker.

Deducting 800. From any sales price to add it back in as tax collected. You already sound like a govt employee. geesh!

I kinda know how things work under Murphy's law. It goes something like this, Guy buys a inop car sells to a Canadian. Canadian takes car accross border with papers and some Canadian tax guy says I'll be helping ga by sending a copy back to ga state revenue brothers and whoops, form shows no tax collected so when they can't collect from canuk, whoa heres a djmbass we can bust in the head with interest and penalties plus sales tax to boot.
Come on guys, never seen the movie Deliverence?

Squeel like a piggy, boy!

[964TargaC2]

Simple

fill out GA form and in spot for tax write NONE

Yew shore got a purty mouth..