Export Out of State or Out of Country?
With Texas on the border of 5 states as well as Mexico, we often receive calls regarding vehicles sold out of state as compared to those sold out of country. The Texas Export Sales Rule, 215.147, is included below as well as the link to the Texas Comptroller "Texas Motor Vehicle Sales Tax Exemption Certificate--For Vehicles Taken Out of State" (Form 14-312).
- Identification. If out of state, then follow the same photo ID requirements for in-state sales. Out of country sales require ID from the jurisdiction where the buyer resides such as a driver's license, passport, consular identification document, or other similar document as well as the buyer's full name, foreign address, etc.
- Comptroller form 14-312. For both out of state and out of country sales. Give the signed original to the customer and keep a copy for your deal jacket. DO NOT send to the Comptroller.
- Stamp. For out of country sales, the title must be stamped “FOR EXPORT ONLY” with the dealer's P number on the front and back of the title where there is any open assignment. NO stamp required on out of state sales.
- Titles: If vehicles are going out of the country, Customs requires the titles must accompanying the vehicle with a Bill of Lading or other similar sales documents. If out of state, the title papers must be given to the buyer within 20 days of the sale for registering in another state.
- For a wholesale transaction, inform your buyer he needs a tag from his state if he plans on DRIVING the vehicle back.
Do: Collect $5 for the Buyers Tag.
Don't: Collect sales tax on the purchase (unless you plan to register in a foreign state / don't).
Do: Have the customer sign Form 14-312, Texas Motor Vehicle Sales Tax Exemption Certificate- for Vehicles Taken Out of State.
Don't: Forget to give the customer the signed original Form 14-312 with instructions to provide Form 14-312 to their state's vehicle registration division.
Do: Have a customer who purchases a vehicle for wholesale that will be taken out of state, fill out Form 14-313, Texas Motor Vehicle Sales Tax Resale Certificate.
Don't: Send Form 14-313 to the Comptroller. Keep it in your deal jacket.
Do: Give the vehicle title to the customer.
Don't: Apply for title or registration on behalf of the customer.
Do: Give the customer a Buyers Tag.
Don't: Forget to make copies of EVERYTHING
Do: Stamp “FOR EXPORT ONLY” if out of the country.
Don't: Stamp “Export Only' if out of state.
43 TAC 147 The Export Sales Rule
(a) Before selling a motor vehicle for export from the United States to another country, a dealer must obtain a legible photocopy of the buyer's government-issued photo identification document. The photo identification document must be issued by the jurisdiction where the buyer resides and be:
(1) a passport;
(2) a driver's license;
(3) a concealed handgun license or license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;
(4) a national identification certificate or identity document; or
(5) other identification document containing the:
(A) name of the issuing jurisdiction;
(B) buyer's full name;
(C) buyer's foreign address;
(D) buyer's date of birth;
(E) buyer's photograph; and
(F) buyer's signature.
(b) A dealer that sells a vehicle for export from the United States shall place a stamp on the title that includes the words "For Export Only" and includes the license holder's GDN. The stamp must be legible, in black ink, at least two inches wide, and placed on the:
(1) back of the title in all unused dealer reassignment spaces; and
(2) front of the title in a manner that does not obscure any names, dates, mileage statements, or other information printed on the title.
(c) In addition to the records required to be maintained by §215.144 of this title (relating to Records), a dealer shall maintain, for each motor vehicle sold for export, a sales file record. The sales file record shall be made available for inspection and copying upon request by the department. The sales file record of each vehicle sold for export shall contain:
(1) a completed copy of the Texas Motor Vehicle Sales Tax Exemption Certificate for Vehicles Taken Out of State, indicating that the vehicle has been purchased for export to a foreign country;
(2) a copy of the front and back of the title of the vehicle, showing the "For Export Only" stamp and the GDN of the dealer; and
(3) if applicable, an Export-only Sales Record Form, listing each motor vehicle sold for export only.
(d) A dealer, at the time of sale of a vehicle for export, shall:
(1) enter the information required by Transportation Code, §503.061 in the temporary tag database;
(2) designate the sale as "For Export Only"; and
(3) issue a buyer's temporary tag, in accordance with Transportation Code, §503.063.
Comptroller 14-312 https://comptroller.texas.gov/forms/14-312.pdf
I claim this exemption because the vehicle is to be transported outside this state, prior to any use in this state other than the transportation of the vehicle out of state, for use exclusively outside this state. I understand that, if I register the vehicle in Texas, the exemption I am claiming will be presumed invalid.
By signing below, I hereby authorize the Comptroller to provide a copy of this certificate to the state or country in which the vehicle will be titled, registered and used. I understand that I will be liable for payment of motor vehicle sales or use taxes that may become due if I fail to comply with the provisions of the Texas Tax Code, Chapter 152, Taxes on Sale, Rental, and Use of Motor Vehicles. This certificate should be furnished to, and retained by, the seller. Do not send the completed certificate to the Texas Comptroller of Public Accounts.