SALT Report 1191 – The Connecticut Department of Revenue Services updated its guidance regarding sales made to diplomatic personnel and diplomatic missions which are exempt from Connecticut sales and use taxes. The notice reflects changes to the re-designed Diplomatic Tax Exemption Card that was first issued in June 2011 and clarifies the documentation that retailers must maintain when tax exempt sales are made.
There are two classes of the Diplomatic Tax Exemption Card: one for personal purchases made by diplomatic personnel, and one for official purchases made by a diplomatic mission.
Personal Tax Exemption Cards:
The card issued to qualified diplomatic personnel for personal purchases is titled “United States Department of State Personal Tax Exemption” and bears the photograph and identification of the person who is entitled to the tax exemptions stated on the card. This card is only for the personal use of the person whose picture is on the front of the card.
Mission Tax Exemption Cards:
The card issued to qualified diplomatic missions is titled “United States Department of State Mission Tax Exemption” and bears the photograph and identification of the person who has been given official purchasing privileges for that office. All purchases must be made in the name of the mission and paid for by mission check or credit card. This card is not used for personal purchases.
- Retailers must require the purchaser to present his or her tax exemption card to verify the identity of the purchaser and that the card has not expired.
- Retailers are required to verify that the purchaser qualifies for the exemptions in accordance with the rules applicable to the class and level of tax exemption.
- Retailers must retain a photocopy of the tax exemption card for all sales made to holders of these cards.
Gasoline and Diesel Fuel Purchases:
- Tax exemptions are extended to missions and personnel through purchases with exempt oil company credit card accounts.
- Purchases made with cash is not exempt.
- Personal or mission tax exemption cards may not be used to purchase gasoline or diesel fuel tax-free.
Diplomatic Tax Exemption Cards are valid nationwide and may be used at the point of sale by their holders to make exempt retail purchases.
For Further Information: