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pr4evr
08-15-2005, 10:56 AM
I searched the ED forum with no luck so here it goes......
I have a realtive stationed in Germany and I am considering having him purchase my 6er for me since the armed forces do not pay taxes on such things. Considering I would then need it shipped to me in North Carolina, is this option beneficial to me(from an economical standpoint)? Thanks for any all assistance you may be able to provide.
Desertnate
08-15-2005, 11:04 AM
I searched the ED forum with no luck so here it goes......
I have a realtive stationed in Germany and I am considering having him purchase my 6er for me since the armed forces do not pay taxes on such things. Considering I would then need it shipped to me in North Carolina, is this option beneficial to me(from an economical standpoint)? Thanks for any all assistance you may be able to provide.
The ED folks can probably advise you better, but I still think you pay taxes on the vehicle. It is true that you don't pay taxes when you buy the vehicle. However, when you bring the vehicle back to the US and register it, you will have to pay sales tax at that time. Depending on the state, what you pay differs. When I was in the UK I was looking at buying a Volvo XC90 through military sales. When I researched how to liscense it here in Illinois, I learned that I would have to pay sales tax on the ORIGINAL price I payed for the car no matter how long I drove the car or home many miles were on it. Other states allow you to pay tax on the car as a used car and the tax rate is based on current market value of the car if it exceeds certian milage/age criteria.
pr4evr
08-15-2005, 11:16 AM
Well then....that would totally defeat the purpose. I will have to check with my local dealer to confirm, but thanks for the heads up.
Desertnate
08-15-2005, 11:22 AM
Well then....that would totally defeat the purpose. I will have to check with my local dealer to confirm, but thanks for the heads up.
Its one of those hidded costs that bite you in the butt. Why don't you just do ED. The prices would be that much different, if at all, and you would avoid all the uncertainty.
You're local dealer may not be familiar with Military Sales and some of the import rules. It isn't like ED in many ways. Another good place to call is the local vehicle liscensing bureau. The tax issue comes up when you try to register a car that has never been registered in the US before and the bill of sale shows no sales tax being paid anywhere.
pr4evr
08-15-2005, 11:53 AM
If you do ED don't you have to actually go over to pick it up? I'm not big on traveling overseas.
The DMV would be a good place to start. Thanks for the advice.
XZLR8
08-16-2005, 11:00 PM
If you do ED don't you have to actually go over to pick it up? I'm not big on traveling overseas.
Yes... thus, European Delivery. :)
I don't think there is any way to really avoid paying tax on that car once the car hits this country, regardless of how you went about purchasing it.
grahambishop
08-25-2005, 07:46 PM
from the Pentagon Car Sales in Vogelweh and had it sent back here. Don't know if you are military or not...there are costs if you are not acitve duty when you get back to the states. I was a civilian and got whacked for US Customs duty and sales taxes from Virginia. If you want to email me at grahambishop42@msn.com I can give you all the gory details. It was as much fun as getting your gums scraped!
pr4evr
08-26-2005, 08:56 AM
In that case, I think I'll just order one here in the States :)
bluemagic
12-07-2005, 11:39 PM
I'm stationed here at Ramstein AB Germany. This is the following from Pentagon Car Sales website on import and sales taxes:
"What is my Federal Import Tax liability in the USA if I purchase through this program?"
Import Tax is charged at 2.5% of the total value stated on the Bill of Sale. As a general rule the criteria for free (non-taxable) importation is that the owner must have been stationed abroad for 140 consecutive days and has taken physical possession of the vehicle while stationed abroad. A copy of official military (PCS) orders must accompany the vehicle being shipped and as some US ports of entry stipulate a minimum mileage requirement in order to avoid Import Tax, it is also recommended that your vehicle be shipped with a minimum of 500 miles at the time of importation. Depending upon whether you are Military, Civilian (GS) or DOD contractor, the rules can vary. If you’re unsure just check with the relevant department or visit the official US Customs Website and navigate to the relevant section.
Hope this helps
Malibubimmer
12-08-2005, 12:16 AM
Welcome.
grahambishop
12-08-2005, 04:49 AM
I'm stationed here at Ramstein AB Germany. This is the following from Pentagon Car Sales website on import and sales taxes:
"What is my Federal Import Tax liability in the USA if I purchase through this program?"
Import Tax is charged at 2.5% of the total value stated on the Bill of Sale. As a general rule the criteria for free (non-taxable) importation is that the owner must have been stationed abroad for 140 consecutive days and has taken physical possession of the vehicle while stationed abroad. A copy of official military (PCS) orders must accompany the vehicle being shipped and as some US ports of entry stipulate a minimum mileage requirement in order to avoid Import Tax, it is also recommended that your vehicle be shipped with a minimum of 500 miles at the time of importation. Depending upon whether you are Military, Civilian (GS) or DOD contractor, the rules can vary. If you’re unsure just check with the relevant department or visit the official US Customs Website and navigate to the relevant section.
Hope this helps
That's the same place I bought mine. You are correct about the rules being different depending on your status as a military member, contractor or GS employee. The guy who posed the question is in the same status boat I was in (as a contractor) and will pay duties and so on. He is better off trying to arrange a European Delivery.
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