Do You Pay Tax On Shipping Cars?

One of the most frequent questions we get from our customers is if they have to pay taxes when they ship. For most people and in most cases, the answer is going to be “no” since hauling is generally a tax-exempt service, at least if you’re moving to and from the United States. In some cases, you may even be able to deduct the cost, so long as you’re relocating for work or business. There generally are tax considerations when moving internationally, which are dependent on the country you’re delivering to and the specific taxes they have on imports there.

When You Do Have To Pay Taxes

If you’re moving that you already own (within the United States), then you do not have to pay taxes on the fees. However, if you buy a car and the price is included as part of the purchase price, then the expense is taxable, along with the auto itself. The reasoning behind this is that the total expenditure of the auto is taxable and, if hauling is included in that, then it is considered part of the “sale price.” This applies to both new and used vehicles so it’s an important thing to keep in mind if you’re buying from out of state and having it hauled to you as part of the total price.

Since costs are not taxable, only those bundled with an auto sale are taxable. For example, if you purchase a car out of state and make arrangements to have it shipped on your own, it is not taxable. However, if the seller arranges for delivery, it is considered part of the purchase price and is taxable, along with itself.

A1-AT is an affordable, professional company with more than two decades of experience behind our services. With locations in every major metro area in the U.S., there’s no shipment that we can’t handle, regardless of the size, scope, or distance of your request. We are happy to give FREE estimates to all interested parties, either by using our online request form or by calling us today at 1-800-452-2880!

When You Can Deduct Costs

There is one circumstance in which you can deduct the fee from your taxes, which is tied to moving for work. If you are relocating for a job, your expenses are considered tax deductible, which includes expenses. There are, however, a few criteria you need to meet to file for this particular deduction. First, your new job must be at least 50 miles further away than it was at your previous residence, which is a fairly easy standard to meet for most people who are moving. Second, you need to work full-time for 39 weeks of your first year in your new position. If you are an independent contractor, the full-time work requirement extends to two years.

International Hauling & Taxes

What we’ve covered above only applies to moving within the United States, which is quite different from international or overseas taxes. The tax burden you’ll face with international hauling mainly has to do with the two countries involved, though almost all of them will assess some form of tax on all imports. In some cases, this tax can be very high, so it’s important to check the import/export laws of the countries in question to fully understand the expenditure and taxes involved with international delivery.