This article illustrates how sales tax works on plated vehicle sales while using atgPay as the payment processor for an event.
This article contains the following sections:
- What is considered a "Plated Vehicle"
- When sales tax is charged on vehicle sales
- When sales tax is not charged on vehicle sales
- Collecting Vehicle Taxes and Fees outside of atgPay
- atgPay Tax Collection and Sub-categorization use
- Bidder Impact and Exemption
What is considered a "Plated Vehicle"
The majority of "Plated Vehicle" lots will be listed under the "Cars & Vehicles" primary category on Proxibid.com. There are additional sub-categories under other primary categories.
The term "plated" usually refers to the vehicle in question being registered with a license plate by the relevant government authority.
To see the complete list of sub-categories under Cars & Vehicles, please review the Category Legend article.
If you have questions if your upcoming vehicle lot is considered plated or not, please reach out to our Seller Support team.
When sales tax is charged on vehicle sales
State legislation dictates that as the marketplace facilitator, Proxibid must calculate, collect and remit sales tax for specific items in specific scenarios sold on Proxibid.
If atgPay is enabled on your event, any lot categorized within the main "Cars & Vehicles" category and does not have a sub-category assigned on Proxibid.com; sales tax will be calculated for collection and remittance will be handled by Proxibid.
When sales tax should not be charged on vehicle sales
Plated vehicle lots categorized to the sub-category level and sold through atgPay, will have no sales tax charged included on the buyer invoice.
See Categorization & Metadata for instructions to apply a Category and Sub-Category to your lot(s)
Proxibid will not collect/retain/remit these fees. By utilizing this feature, it is assumed the Auction House will be remitting the vehicle sales tax.
Collecting Vehicle Taxes and Fees outside of atgPay
Should the Auction House be required to or wish to calculate, collect, and remit sales tax on plated vehicles directly (not through atgPay):
- Ensure to properly apply the sub-category to your lot(s) as outlined above.
- Prior to sending your winning invoice(s) select edit on the applicable invoice.
- Navigate to the Totals section of the invoice
- Enter a description where it currently states Miscellaneous Charges
- Ensure verbiage helps clarify to winning buyer what the fees relate to. Ex. Tax and fees for 2018 Subaru Forrester VIN#
- Fee Type dropdown select Vehicle Taxes and Fees
- Enter the total dollar amount to collect.
Sales Tax and Fees collected will be disbursed to the Auction House in their next disbursement.
Bidder Impact and Exemptions
Bidders should print their complete invoice from their Proxibid account when registering their vehicle (which will also showcase sales tax has been paid).
Events where atgPay calculated tax is disabled and Auction House has applied a Vehicle Tax and Fee line item, tax exempt winning bidders are advised to reach out to the auction house directly to have sales tax removed from winning invoice(s).