Could invoices support an export certificate, and did parts installed on a vehicle before it was driven to Mexico remain tax-exempt exports?

Plain-English summary

The invoices did not support a refund. Invoices could support an export certificate only if the broker signed them, the certificate clearly identified them, and they identified the buyer.

An item also had to retain its export character. Parts installed on a vehicle and used in Texas before it was driven to Mexico were not exempt exports, however brief the use.

What this means for you

Export treatment required complete documentation and no Texas use before export.

Common questions

Could invoices support the certificate? Yes, with the stated signature and identification details.

Did these invoices qualify? No.

Did installed parts remain exempt? No; in-state use defeated export status.

Citations and references

The letter cited no specific statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9204L1163G01

Original ruling text

April 7, 1992

Dear **:

Thank you for your letter concerning the acceptance of export
documentation for automotive parts and accessories.

WE WILL ALLOW INVOICES TO BE USED AS SUPPORT FOR AN EXPORT
CERTIFICATE (I.E., IN LIEU OF DESCRIPTION, QUANTITIES, ETC.,)
HOWEVER, WE DO REQUIRE THAT THE BROKER SIGN THE INVOICES AND THAT
THE INVOICES BE CLEARLY IDENTIFIED ON THE CERTIFICATE AND THAT
THE INVOICES IDENTIFY THE BUYER. The invoices you submitted do
not meet these criteria and so do not qualify for tax refund.

For your further information, in order for an exported item to be
exempt from sales tax, the item must retain its character as an
export. An item that is used in this state prior to export,
regardless of the period of time, loses its character as an
export. That means if an item is installed on a vehicle and the
vehicle is subsequently driven to Mexico, the item was used in
the United States and the tax may not be refunded on the
transaction. We have taken the same position on other tangible
personal property used prior to being transported to Mexico.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

If you have questions or need more information, please call or
write. You may reach me by calling toll free, (800) 531-5441.
My direct line number is (512( 463-4680. The number for FAX
transmissions is (512(475-0900). You may write to me in care of
Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division