TAX ID Question

[Richard.E]

Ok so I plan on selling 2 vehicles to a business who plans on using them In Mexico.

They have purchased them from a company in San Diego in the past. The customer told me they are "tax exempt" and San Diego companies are able to accept her Mexican Tax ID. My business is located in OC, so I'm not 100 percent sure on what I should do. Short of calling my CPA and asking his advice so I'm looking to the inmates.

From what I've read businesses in California that sell goods & services to Mexico are exempt from taxes as long as it is delivered out of the country. However, the customer is requesting me to deliver the vehicles to an address in Otay.

Below is what is giving me trouble since I am not shipping it to a location out of the country.
Somebody explain this to my dumb millennial ass....

Sales for export

California sales tax does not generally apply to sales when:

• The buyer intends to ship the property to a foreign destination,
• The property is irrevocably committed to export at the time of sale, and
• The property is actually shipped or delivered to that foreign destination prior to its use by the customer.

However, it is not a sale for export if a merchant sells a television and delivers it to the trunk of the purchaser’s car, even if the purchaser is en route to Mexico.

 

[mjc]

Not an cpa, but second bullet tells me if it is really going there it is exempt.

 

[DILLIGAF]

I would say taxes apply based on delivery address.