A taxpayer sought a refund of Texas sales tax paid on a VCR that was allegedly exported to Canada, but the formal Canadian customs entry document listed a video camera instead of a VCR. Can an affidavit or statement from the purchaser take the place of the formal export document to prove the export and support a refund?

Plain-English summary

A taxpayer asked the Comptroller's office to refund Texas sales tax paid on a VCR, on the theory that the VCR had been exported to Canada. The taxpayer offered an explanation for why the formal Canadian customs entry document listed a video camera rather than a VCR. The Comptroller found the explanation reasonable on its face but still denied the refund: affidavits, statements, or exemption certificates from purchasers are not acceptable proof of export. The only acceptable proof of export is the formal entry document issued by the foreign country's customs authority (Canadian Customs, in this case) showing the property that was actually imported. Because the formal entry document showed a video camera — not a VCR — no refund could be granted for tax paid on the VCR. The letter notes that if the entry document is wrong, the fix is to get Canadian Customs itself to acknowledge the error and issue a corrected document.

What this means for you

Sellers relying on export sales exemptions

If you're claiming a Texas sales/use tax exemption or seeking a refund on the theory that goods were exported out of the country (or shipped out of state) to a customer, don't rely on the customer's own affidavit, statement, or an exemption/resale certificate as your proof. The Comptroller treats those documents as insufficient. You need the formal entry document from the destination country's customs authority (or equivalent formal shipping/import documentation) that actually matches the goods in question.

Customers seeking a refund of tax already paid

If the item described on your formal export/entry documentation doesn't match the item you actually paid Texas tax on, a refund will be denied — even if you have a plausible explanation for the mismatch. Your recourse is to go back to the customs authority (or shipper) that issued the document and get it corrected, not to submit your own affidavit explaining the discrepancy.

Accountants and tax professionals

When advising clients on documenting export or out-of-state shipment for Texas sales tax exemption/refund purposes, emphasize that self-serving statements (affidavits, purchaser statements, exemption or resale certificates) carry no weight as proof of export in this context — only the formal, third-party-issued entry/import document does, and it must match the specific property for which the refund is sought.

Common questions

Q: Can a customer's affidavit or written statement serve as proof that goods were exported out of the country?
A: No. The letter states that affidavits, statements, or exemption certificates given by purchasers are not acceptable as proof of export.

Q: What is the acceptable proof of export?
A: The formal entry document from the destination country (here, Canada) showing that the property was imported there — that is the only acceptable proof on which to base a refund.

Q: What if the formal entry document is incorrect — for example, it lists the wrong item?
A: A refund cannot be granted for tax paid on an item (e.g., a VCR) when the formal entry document shows a different item (e.g., a video camera) was exported. If the document is wrong, the taxpayer must get the foreign customs authority to acknowledge the error and issue a corrected document.

Q: Why won't the Comptroller just accept a reasonable explanation for a documentation mismatch?
A: The letter explains that allowing refunds on items not shown on formal entry documents "would circumvent our law." The Comptroller says it doesn't want to impose an unreasonable burden, but is limited by the parameters of the law itself.

Q: Can I rely on this letter for my own export refund claim?
A: No. This opinion is based on the facts presented to the Comptroller in this particular case, and it can be relied on only by the taxpayer to whom it was issued. If your facts differ, the outcome could differ.

Citations and references

No specific statutes or rule numbers were cited in this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9207L1181D05

Original ruling text

July 1, 1992

Dear **:

Thank you for your letter concerning the denial a refund of Texas sales tax in
the amount of $**.

The statement that you gave regarding why Canadian Customs listed a video
camera, instead of a VCR, seems to be a reasonable explanation. The
comptroller's office does not wish to impose an unreasonable burden on
obtaining a refund, but we are limited by the parameters of the law itself.

Unfortunately, affidavits, statements, or exemption certificates given by
purchasers are not acceptable as proof of export. The formal entry document
from Canada showing that the property was imported is the only acceptable proof
of export on which to base a refund. A refund cannot be granted for tax paid on
a VCR when the formal entry documents show a video camera has been exported.

It would circumvent our law to allow refunds on items not shown on formal entry
documents. If the formal entry document issued to you is incorrect, you will
have to get Canadian Customs to acknowledge the error and to issue you a
corrected document.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

You may call me 512/475-0030. You may also write to Tax Administration,
Comptroller of Public Accounts.

Sincerely,

David Somerville
Tax Administration Division