Could a Canadian buyer receive Florida's export exemption after taking possession of a vehicle at the dealership and driving it to Canada?

Plain-English summary

A Canadian buyer purchased a vehicle in Florida, paid $1,694.79 in Florida sales tax, took possession at the dealership, waited for the title, and then personally drove the vehicle to Canada. The buyer argued that the intent to export and the later trip to Canada should support a refund.

Florida denied the refund. The export exemption required the vehicle to be committed to a continuous and unbroken export process at the time of sale, such as dealer delivery outside Florida or delivery to a licensed exporter, common carrier, customs broker, or forwarding agent for shipment abroad.

The buyer's possession in Florida broke that export chain. The advisement states that intent to export is not enough and that privately driving the vehicle abroad without the required export arrangement is treated as Florida delivery.

What this means for you

For the exemption described in this ruling, export must be built into the delivery method at the time of sale. Taking the vehicle in Florida and later driving it across the border does not qualify merely because the buyer always intended to export it.

Common questions

Did the buyer qualify because the vehicle ultimately reached Canada? No.

Why did taking possession in Florida matter? It ended any continuous export process and made the sale a Florida delivery under the cited rules.

Was the buyer's intent to export enough? No. The ruling expressly says intent alone does not establish the exemption.

What delivery methods did the ruling identify for export treatment? Dealer delivery outside Florida or delivery to a licensed exporter, common carrier, customs broker, forwarding agent, or United States mail for shipment outside the state.

How much tax refund was denied? $1,694.79.

Citations and references

• Fla. Stat. § 212.06(5)(a)1. (export exemption and Florida-delivery presumption)
• Fla. Admin. Code r. 12A-1.0015(2) (continuous export process and Florida possession)
• Fla. Admin. Code r. 12A-1.007(1)(a) and (8)(i) (motor-vehicle tax and proof of export)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 07A-046

Original ruling text

SUMMARY
QUESTION: Whether a taxpayer, who is not a licensed exporter, can export a vehicle from the
State of Florida by taking possession of the vehicle at a Florida dealership and subsequently driving
the vehicle to Canada.
ANSWER: A taxpayer, who is not a licensed exporter, cannot export a vehicle from the State of
Florida by taking possession of the vehicle at a Florida dealership and subsequently driving the
vehicle to Canada.

December 20, 2007

Re:

Technical Assistance Advisement 07A-046
Sales and Use Tax – Vehicle Export
Section 212.06, Florida Statutes (F.S.)
Rule 12A-1.0015, Florida Administrative Code (F.A.C.)
Rule 12A-1.007, F.A.C.
XXX [the taxpayer]

Dear :
This is a response to your letter of September 28, 2007, mailed on November 7, 2007, requesting a
Technical Assistance Advisement (TAA) regarding the above-referenced matter. This response to
your request constitutes a TAA under Chapter 12-11, Florida Administrative Code (F.A.C.), and is
issued to you under the authority of Section 213.22, Florida Statutes (F.S.).
FACTS
The taxpayer is a Canadian citizen who purchased a XXX from XXX [the dealership] in XXX,
“for the sole and express purpose of exporting to Canada as soon as the paperwork … was
provided.” When the taxpayer purchased the vehicle, the dealership informed the taxpayer that he
was obligated to pay $1,694.79 in Florida sales tax. The taxpayer paid the applicable sales tax and
remained in Florida awaiting the title to the vehicle. The dealership provided the vehicle title to the
taxpayer on April 5, 2007, and the taxpayer left Florida on April 8, 2007, to return to Canada.

ISSUE
Whether the taxpayer is entitled to a refund of $1,694.79 in Florida sales tax paid with the purchase
price of a vehicle when the taxpayer took possession of the vehicle in the State of Florida and
subsequently drove it to Canada.

REQUESTED ADVISEMENT
The taxpayer requests that the Department issue a TAA stating that the taxpayer properly exported
his vehicle from Florida in accordance with s. 212.06, F.S.
TAXPAYER’S POSITION
The taxpayer states that “the timing of said purchase was done to facilitate finalizing the paperwork
in support of our immediate exporting and registration of said vehicle in Canada.” The taxpayer asks
that the Department review his case “in light of the intent of the purchase.” The taxpayer states that
his “decision to take delivery and drive rather than ship the vehicle should not preclude [me] from
receiving a refund of the Florida Sales Tax paid.”
APPLICABLE LAW
Section 212.06(5)(a)1., F.S., provides, in part:
… [I]t is not the intention of this chapter to levy a tax upon tangible personal
property imported, produced, or manufactured in this state for export, provided that
tangible personal property may not be considered as being imported, produced, or
manufactured for export unless the importer, producer, or manufacturer delivers the
same to a licensed exporter for exporting or to a common carrier for shipment outside
the state or mails the same by United States mail to a destination outside the state ….
Every retail sale made to a person physically present at the time of sale shall be
presumed to have been delivered in this state. (emphasis supplied)
Rule 12A-1.0015(2), F.A.C., provides, in part:
(a) A dealer is required to collect tax on sales of tangible personal property when the
property is delivered to the purchaser or the purchaser's representative in Florida,
whether the disclosed or undisclosed intention of the purchaser is to transport the
property to a location outside Florida, or whether the property is actually so
transported….
(b) When a dealer sells tangible personal property, commits the property to the
exportation process at the time of sale, and the exportation process remains
continuous and unbroken until the property is exported from Florida, the dealer is not
required to collect tax. The intent of the seller and the purchaser to export the
property is not sufficient to establish that the property is not subject to tax in
Florida…. The following are examples of methods to commit the property to the
exportation process at the time of sale:

1. The dealer is required by the terms of the sale contract to deliver the property outside
   Florida using the dealer's own mode of transportation;

2. The dealer is required by the terms of the sale contract to mail the property by United
States mail to a destination located outside Florida; or

3. The dealer is required by the terms of the sale contract to deliver the property to a
   carrier, licensed customs broker, or forwarding agent for final and certain movement of
   the property to a destination located outside Florida.

(e) Regardless of the evidence maintained by the dealer to document delivery of the
property to a common carrier or a licensed customs broker for shipment to a location
outside Florida, or the mailing of the property by the United States mail to a location
outside Florida, tax is due when the property is diverted in transit to the purchaser or
the purchaser's agent or representative in Florida and such person takes possession in
Florida, or when for any other reason the property is not delivered outside Florida.
(emphasis supplied)

Rule 12A-1.007, F.A.C., provides, in part:
(1)(a) The sale, including occasional or isolated sales, the use, consumption, or
storage for use in this state of any aircraft, boat, mobile home, motor vehicle, or other
vehicle of a class or type required to be registered, licensed, titled, or documented in
this state or by the United States Government is taxable on the full sales price ….

(8)(i) A motor vehicle dealer or a licensed export-import dealer registered under the
sales and use tax law must obtain and provide an ocean bill of lading from a regularly
operated transportation company engaged in foreign commerce to prove export and
exemption from Florida tax, except as otherwise provided in subsection (6), above.
Claimed shipment abroad in privately operated vessels or vehicles where no bill of
lading is issued as proof of export of specific items cannot be allowed without tax.
Such claimed shipment is construed to be acceptance of delivery in Florida by
purchaser and is taxable. (emphasis supplied)

DISCUSSION AND RESPONSE
All sales of motor vehicles in the state of Florida are taxable on the full sales price, unless
specifically exempt under Chapter 212, F.S. See Rule 12A-1.007(1)(a), F.A.C. Section
212.06(5)(a)1., F.S., provides that every retail sale made to a person physically present at the time of
sale shall be presumed to have been delivered in Florida. However, s. 212.06(5)(a)1., F.S., provides
an export exemption when a dealer sells a vehicle to a customer located outside the State of Florida.
In order to receive this exemption, the dealer must commit the property to the exportation process at

the time of sale, and the exportation process must remain continuous and unbroken until the property
is exported from Florida. See Rule 12A-1.0015(2)(b), F.A.C.
Section 212.06(5)(a)1., F.S., provides methods to commit property to the exportation process at the
time of sale. A dealer must: 1) deliver the goods to a licensed exporter for exporting; 2) deliver the
goods to a common carrier for shipment outside Florida; or 3) mail the goods by United States mail
to a destination outside Florida. See s. 212.06(5)(a)1., F.S. Additionally, a dealer may commit
property to the exportation process when: 1) the contract requires the dealer to deliver the property
outside Florida using the dealer's own transportation; or 2) the contract requires the dealer to deliver
the property to a carrier, licensed customs broker, or forwarding agent for final and certain
movement of the property to a destination outside Florida. See Rules 12A-1.0015(2)(b) and 12A1.007(7), F.A.C. Claimed shipment abroad in privately operated vehicles where no bill of lading is
issued as proof of export of specific items cannot be allowed without tax. Such claimed shipment is
construed to be acceptance of delivery in Florida by purchaser and is taxable. See Rule 12A1.007(8)(i), F.A.C.
In the present case, the taxpayer did not use any of the approved methods of exportation provided by
the Florida Statutes and the Florida Administrative Code. Rule 12A-1.0015(2)(e), F.A.C, states that
regardless of the evidence the dealer may have to support an export sale, tax is due when the
property is diverted in transit to the purchaser in Florida and such person takes possession of the
property in Florida. The taxpayer took possession of the vehicle at the time of purchase and broke
any potential chain of export. Therefore, the sale does not qualify for the export exemption, and tax
was due at the time of purchase. The outcome does not change when a purchaser subsequently
drives the vehicle out of Florida after taking possession of the vehicle; once he or she takes
possession in Florida, the export chain is permanently broken, and export is no longer continuous.
The taxpayer argues that “the timing of this purchase demonstrates [my] plan to immediately take
the vehicle back to Canada.” However, a Florida dealer is required to collect tax on sales of tangible
personal property when the property is delivered to the purchaser in Florida, whether the disclosed or
undisclosed intention of the purchaser is to transport the property to a location outside Florida, or
whether the property is actually so transported. See Rule 12A-1.0015(2)(a), F.A.C. The intent of the
seller and the purchaser to export the property is not sufficient to establish that the property is not
subject to tax in Florida. See Rule 12A-1.0015(2)(b), F.A.C. Accordingly, the taxpayer’s intention
to drive the vehicle to Canada, and subsequent successful navigation into Ontario, is not evidence to
overturn this taxable Florida sale. The dealership properly collected the applicable sales tax at the
time of purchase, and a refund of this sales tax is not appropriate.
CONCLUSION
The taxpayer is not entitled to a refund of $1,694.79 in Florida sales tax paid with the purchase price
of the vehicle, because the taxpayer took possession of the vehicle in the State of Florida.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is binding
on the Department only under the facts and circumstances described in the request for this advice, as
specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation
summarized above. You are advised that subsequent statutory or administrative rule changes or
judicial interpretations of the statutes or rules upon which this advice is based may subject similar
future transactions to a different treatment than expressed in this response.

You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s.
213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to
protect confidentiality, we request you provide the undersigned with an edited copy of your request
for Technical Assistance Advisement, the backup material and this response, deleting names,
addresses and any other details which might lead to identification of the taxpayer. Your response
should be received by the Department within 15 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 488-8565.
Sincerely,

Matt Crockett
Senior Tax Specialist
Technical Assistance & Dispute Resolution
Record ID: 38376