ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.12.01. Courtesy Deliveries of Automotive Vehicles by
Alabama Dealers for Out-of-State Dealers.
(1) A courtesy delivery for an out-of-state automobile dealer occurs
when the out-of-state dealer sells an automobile to a customer and arranges
for the vehicle to be shipped to an in-state dealer for delivery to a designated
person in Alabama. The in-state dealer performs the customary dealer preparation
on the vehicle and receives reimbursement for these services. The out-of-state
dealer, not the in-state dealer, invoices the customer for the sale of
the vehicle.
(2) An Alabama dealer who makes a courtesy delivery of an automotive
vehicle in Alabama for an out-of-state dealer is not the seller of the
vehicle and would not be liable for Alabama sales tax on the transaction.
Such courtesy deliveries should not be included in the measure of sales
tax reported by the Alabama dealer.
(3) The out-of-state seller for whom a courtesy delivery is made by
an Alabama dealer is the seller of the automotive vehicle.
(4) The out-of-state seller referenced in (3) above is not liable to
collect and remit sellers use tax on sales of automotive vehicles required
to be registered or licensed with the judge of probate of any county in
Alabama. Instead, the purchaser of the automotive vehicle must remit the
tax levied in Section 40-23-102, Code of Alabama 1975, to the county licensing
official in accordance with Section 40-23-104. (Sections 40-23-102 and
40-23-104) (Adopted through APA effective July 7, 1989, amended November
5, 1996)
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