Vehicle Tax Exemption

The Office of Foreign Missions (OFM) enforces the exemption of eligible foreign missions and their members from payment of any taxes when purchasing, leasing, registering or titling a vehicle. The following procedures detail how vehicles acquired by diplomatic personnel can be authorized for tax exemption. 

All Official and Personal Vehicle Acquisitions Must Be Authorized for
Tax-Exemption by OFM

1. The purchaser must: present a mission tax exemption card, a personal tax exemption card, or a protocol identification card to the seller of the automobile.  This proves to the seller that the purchaser is indeed a diplomatic agent or is authorized to make official purchases on behalf of a diplomatic mission.  The seller is required to retain a copy of this card. The seller must: contact OFM at (202) 895-3500 for a determination on the tax-exempt status of the purchaser.  If the purchase is being made outside of the Washington D.C. area, the purchaser may contact an OFM Regional Office. 
    
2. OFM will: determine the tax-exempt status of the purchaser and provide a letter to the seller.  This letter will state whether or not the purchaser is eligible for exemption from any sales and use tax imposed at the point of purchase by the state in which the sale will occur.   If sales and use taxes are imposed by the state in which the sale is taking place, and the purchaser is determined not to be eligible for exemption from this tax, the purchaser is required to pay this tax to the seller.
   
   Only letters of authorizations provided directly from OFM to the seller are valid for tax-exemption.  Letters provided from any entity besides OFM should not be honored and this practice should be immediately reported.

Existing vehicle registration procedures will not change as a result of this new policy.  Diplomatic missions and their members, including dependents, are required to register all vehicles that they own or lease with the OFM Diplomatic Vehicle Office.  At the time of purchase, all original ownership documents must be submitted to the Diplomatic Motor Vehicle Office for proper vehicle registration. Auto dealerships and state motor vehicle administrations should treat this transaction as an out of state registration.  OFM will issue a registration card and federal license plates once proper documentation is received.  Also, a title will be sent to the indicated lien holder to protect the interest of the lender.