Frequently Asked Questions
TAX
Q. How do I apply for sales tax exemption card?
A. Complete the sales tax exemption card request using the Department’s E-Government Program. Print the Transaction I.D Summary Receipt and the Photograph and Signature Card and provide one current color photograph (2”x2” in size, with a white or light background, taken within the last six months). Forward the above noted items to OFM’s Customer Service Center (Washington, DC area only) or to the appropriate OFM Regional Office. Allow three business days for each application to be processed.
Q. Is there anything else I must do to obtain sales tax exemption?
A. As a general rule, presentation of a sales tax exemption card should be enough to obtain point-of-sale exemption from sales and use taxes throughout the United States. However, in certain states, missions and their members may be asked to complete a form at the time of purchase. In the state of New York, missions and their members are required to complete the form DTF-950 (Certificate of Sales Tax Exemption for Diplomatic Missions & Personnel”). In addition, twenty-two states participate in the Streamlined Sales Tax Agreement which requires foreign missions and their members to complete a Streamlined Sales Tax Agreement–Certificate of Exemption at the time of purchase. The states participating in the Streamlined Sales Tax Agreement are Arkansas, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia and Wyoming. Click here for a copy of the Streamlined Sales Tax Agreement–Certificate of Exemption.
Q: How do I apply for exemption from taxes on gasoline?
A: Obtain and complete a gasoline business/fleet credit card application from one or more of the participating oil companies. For a list of participating oil companies, click here. [Add link here]. Using the Department’s E-Government Program, complete a Request for Exemption from Gasoline Taxes for each oil company credit card application. Submit the completed credit card applications and the Transaction I.D. Summary Receipt to OFM’s Customer Service Center (Washington, DC area only) or the appropriate OFM Regional Office. The oil companies will not accept credit card applications for diplomatic gasoline tax exemption unless they are accompanied by documentation provided directly from OFM. Please click here for additional information concerning exemption from taxes on gasoline purchases. (http://www.state.gov/ofm/tax/gas/index.htm)
Q. How long does it take to receive the tax exempt gasoline credit cards?
A. Foreign missions and their eligible members should receive tax exempt credit cards within approximately 2 months from the date the applications were submitted to OFM.
Q: How do I obtain exemption from taxes on utilities?
A: Using the Department’s E-Government Program, complete a Request for Exemption from Utility Taxes for each utility company to which a request is being made. If more than one account is held with a company (for example, with telephone service providers each phone line/number is a separate account) complete one request for each account. Please click here for additional information concerning exemption from taxes imposed on utility services. (http://www.state.gov/ofm/tax/utility/index.htm)
Q. How long does it take for utility tax exemptions to take effect?
A. It may take 2-3 billing cycles for this exemption to take effect.
Q. At what age can a dependent child receive a tax exemption card?
A. Dependent children of a mission member eligible for tax exemption privileges may obtain a tax exemption card at the age of eighteen. This card will be valid until the individual's twenty-first birthday. For dependent children of a mission member eligible for tax exemption who are accredited by the Office of the Chief of Protocol as a “justified student”, the tax exemption card will be valid until their twenty-third birthday.
Q. I have lost my tax exempt card, what do I have to do to get another card?
A. In the event of a lost or stolen tax exemption card, the mission must submit a diplomatic note to OFM explaining when and where the card in question was lost or stolen, along with a request for a replacement card through the E-Government Program, and wait 30 days to allow for the lost or stolen card to be returned.
Q. How can I receive the tax exemption for Internet purchases?
A. The nature of Internet purchases does not allow for the presentation of diplomatic tax exemption card. Therefore, OFM advises those eligible for tax exemption privileges that such relief cannot be granted on purchases made through an Internet website. OFM will not provide any assistance to foreign missions or their members in obtaining an exemption or reimbursement of taxes charges on purchases made through the Internet.
Q. How do I receive the tax exemption on airline tickets?
A. There are no taxes imposed on the purchase of domestic airline tickets in the United States. Individuals who wish to claim exemption from taxes imposed on international airline tickets acquired in the United States must present to a ticketing agent evidence of the traveler’s A or G visa. Please click here for additional information concerning this topic. (http://www.state.gov/ofm/tax/airline/index.htm)
TAX – FAQ for Vendors
Q: Why are diplomats/card holders allowed to receive tax exemption in the US?
A: Tax exemption privileges for foreign diplomats, consular officers, and staff members are generally based on two treaties: the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations. These treaties have been ratified by the United States and are the supreme law of the land under Article VI of the Constitution. Not all foreign missions and their personnel are entitled to tax exemption. This privilege is based on reciprocity and not all foreign countries grant such privileges to U.S. Embassies and their personnel. Please carefully review the tax exempt card which details the benefits to be offered.
Q: What forms of payment are the individuals using tax exemption cards allowed to use?
A: For Personal Tax Exemption Cards, the person whose name and photo appear may pay with cash, credit cards or personal checks in the name of the bearer of the personal tax exemption card. Personal Tax Exemption Cards are non-transferable. Only the person whose photo appears on the front side of the card is permitted to use it.
For Mission Tax Exemption Cards that are issued to designated representatives of embassies, consulates, and international organizations for use when making official purchases, all purchases must be made in the name of the mission and paid for by either a mission check or credit card. Cash, credit cards or personal checks in the name of the bearer of the mission tax exemption card cannot be used as payment. The person whose name and photo appear on the card is the mission’s point of contact and is responsible for ensuring the accuracy of the exemption. This individual does not need to be present when purchases are made in the name of the mission.
Q: How will I file my taxes if a person with a tax exemption card comes into my business?
A: All questions concerning bookkeeping requirements should be directed to the appropriate city or state revenue/tax authority.
Q: Am I allowed to keep records of the persons with tax exemption cards?
A: Yes. In fact, all vendors are encouraged to keep for their records a copy of the tax exemption card and a copy of the receipt for the tax-exempt transaction.
Q: Who can I call if I have questions about the tax exemption card program, or a particular tax exemption card that I am presented with?
A: Questions concerning the authenticity of a particular card, or the exact nature of the tax exemption afforded to the card holder, may be directed to (202) 895-3500, ext. 2 between 8am and 5pm EST (Monday - Friday). Such questions may also be directed to OFM’s Regional Offices in Chicago, Houston, Los Angeles, Miami, New York and San Francisco. Please click here for contact information for these offices.
CUSTOMS
Q: What imported items require the submission of a Form DS-1504 “Request for Customs Clearance of Merchandise?”
A: With the exception of properly labeled diplomatic pouches, all imports consigned to a foreign mission, international organization or their members are required to use Form DS-1504 as the sole means for securing entry of such shipments through U.S. Customs and Border Protection.
Q. Where can I find Form DS-1504 “Request for Customs Clearance of Merchandise?”
A. Please click here to obtain Form DS-1504. (http://www.state.gov/documents/organization/22637.pdf)
Q. How do I complete Form DS-1504 “Request for Customs Clearance of Merchandise?”
A. Please click here for the detailed instructions for completing Form DS-1504. (http://www.state.gov/ofm/customs/1504/index.htm)
Q. How far in advance may I submit the Form DS-1504 “Request for Customs Clearance of Merchandise?”
A. Missions may submit the Request for Customs Clearance of Merchandise as soon as they have a photocopy of the Air Waybill or Bill of Lading and the Arrival Notice associated with the import. However, OFM is unable to certify such requests until after the shipment has physically arrived at the U.S. port of clearance.
Q: How long does it take for a Form DS-1504 “Request for Customs Clearance of Merchandise” to be processed?
A: OFM reserves a period of 10 work days to adjudicate properly completed submissions of Form DS-1504 “Requests for Customs Clearance of Merchandise.” However, when requests are properly completed, OFM is generally able to complete its review within 2 to 3 business days. Subject to reciprocity, OFM may impose reciprocal restrictions on the timeframe in which it will complete its adjudication of such requests.
Q: What documents must I attach to a Form DS-1504 “Request for Customs Clearance of Merchandise?”
A: In general, foreign missions are only required to submit photocopies of the Air Waybill or Bill of Lading and the Arrival Notice associated with the import request.
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