Sales Tax for non-residents (Atlanta: credit, home, transfer) - Georgia (GA) - City-Data Forum

chad2 · 11-29-2007, 10:06 AM

I am from Canada and plan to purchase a car from Atlanta to bring back to Canada. The Dealer is claiming that I have to pay the 7% Sales Tax. Does this make any sense?
I am a Canadian citizen and live in Ontario, and I have to pay Ontario Sales Tax when I register the car in Ontario.
I appreciate any help on this. Thanks.

neil0311 · 11-29-2007, 10:12 AM

I'm not sure about GA, but in other states that I have lived, if you bought a car out of state, you needed to obtain the certificate of origin and pay the tax in your home state. You're then exempt from paying taxes in the "dealer's state".

williamthecyclist · 12-19-2007, 02:02 PM

Neil0311 is correct. You might have to pay "title" fees to get the title transfered and you will have show proof of citizenship in CA.

Twinkletoes · 12-20-2007, 10:02 AM

GA sales tax rules state that you pay the tax based on where the item is purchased. That is why you pay sales tax of 6% if you buy something in Gwinnett, then buy the same item in Fulton and pay 7%.

Unless they have separate rules for cars, the above would apply. You would pay the 7% tax. However, could you get a tax credit from Canada? Could you order the car from a dealer in Canada? Would the GA dealer order the car and ship it to you in Canada (in which case you would not pay GA sales tax, but shipping might cost more)?

10scoachrick · 12-20-2007, 12:22 PM

Quote:

Originally Posted by Twinkletoes

GA sales tax rules state that you pay the tax based on where the item is purchased. That is why you pay sales tax of 6% if you buy something in Gwinnett, then buy the same item in Fulton and pay 7%.

Unless they have separate rules for cars, the above would apply. You would pay the 7% tax. However, could you get a tax credit from Canada? Could you order the car from a dealer in Canada? Would the GA dealer order the car and ship it to you in Canada (in which case you would not pay GA sales tax, but shipping might cost more)?

Indeedy, rules are different for autos. Tax is based on buyer's residence. Not sure of the hoops involved with international transport but when buying a car in Fulton County for my mother in South Carolina, we had a notarized form stating that the vehicle was to be titled and registered in another state; thus, NO local sales tax.

chad2 · 12-28-2007, 09:51 PM

Thanks for all the replies guys. This turned out to be a mission impossible - that is for a Canadian to buy a brand new car from the US - at least a BMW. Apparently most car manufacturers (at least BMW, Lexus, Mercedes, etc..) have put a lot of pressure on US Dealers to only sell brand new cars to American residents. The dealers face losing their dealer license if they are found of knowingly selling to a non resident. So, at least any BMW dealer requires registering the car for you no matter in what state you live.
Just in case people are wondering why I am buying the car from the US, it is becasue with the current canadian dollar exchange being at par with the US dollar, MSRPs on new cars are 30% more in Canada.
This hurdle only affects new cars, it is much easier to buy a used car, and I am looking for one now.
I haven't eliminated the thought of a new car yet, as I have a brother-in-law who I can buy the car in his name and then buy it from him, but sounds like a headache.
I also learned from many dealers that there have been many many people looking to do the same thing I was trying to do, and they are actually turning down canadians walking in with cash money to pay for the cars - how crazy is that...

netdragon · 12-28-2007, 10:19 PM

Have you considered buying the BMW in Germany and shipping it to Canada?

chad2 · 01-12-2008, 09:00 AM

Quote:

Originally Posted by netdragon

Have you considered buying the BMW in Germany and shipping it to Canada?

Thanks for the info netdragon.

I haven't really considered that, as I didn't think it was possible. Is it possible? I will do some research, let me know if you have any more info on that.

I would like to clarify that the reason I plan to buy the car from the US is that the MSRP for the same car is at least 10k cheaper than what it is in Canada.

However to import the car from the US, we have to pay 6.2% duty on it, plus a 5% Goods-and-services tax, plus other small importation/exportation fees.

Plus the dealers have been assigned by the government to clear the cars for exportation and registration, and there charges have been increasing; currently it will cost $850 for clearence letters, plus any charges to convert the car to Canadian standards, mainly day-time running lights, which looks to be about $1,700 charge on a BMW.

With all the above extras, it is still a better deal to get the car from the US.