Motor vehicle dealers can register vehicles (or transfer a vehicle's registration into their name) without having to pay duty if they are issued with:
These duty-free transactions are only available where the vehicle being registered (or transferred) is trading stock or demonstrator vehicles that are acquired and used solely for purposes associated with:
- resale of trading stock in the normal course of the dealer's business; or
- demonstrating the vehicle to prospective purchasers.
Acceptable uses of the above vehicles include the loaning of vehicles to charities where they are used for charitable purposes.
An exemption certificate remains in force for 12 months only and must be renewed annually.
New certificate application
Complete the Application for a Motor Dealer's Duty Exemption certificate. A non-refundable fee applies.
Renewal certificate application
If you have an existing Motor Dealer's Duty Exemption Certificate, the State Revenue Office will automatically send you a renewal application. A non-refundable fee applies..
Motor Vehicle Trader Licences
The Motor Vehicle Traders Act 2011 requires most Exemption Certificate holders to become licensed Motor Vehicle Traders.
A licensed Motor Vehicle Trader can access the Motor Dealer's duty exemption by quoting their Motor Vehicle Trader Licence number. Therefore, they do not need to apply for a separate Exemption Certificate to access the exemption available on trading stock and demonstrator vehicles.
Reminder: The exemption is available only on vehicles purchased as trading stock and demonstrator vehicles. The duty is payable on vehicles used for any other purpose.
Information on the Motor Vehicle Trader Licenses and the application process is available from an application form is available from Consumer, Building and Occupational Services or go to cbos.tas.gov.au.
Motor Vehicle Dealer Audits
The State Revenue Office may conduct onsite audits of Motor Vehicle Dealers to ensure compliance with the requirements of the Duties Act 2001 and, if applicable, any Exemption Certificate conditions.
Dealers may be required to provide information to the State Revenue Office to enable it to confirm that the dealer's customers have complied with their obligations under the Duties Act 2001.
Dealers are also required to keep sufficient records to enable them to prove they have complied with their obligations under the Duties Act. For example, motor dealers usually maintain the following types of records:
- evdence of marketing strategies (ie copies of advertisements, details of listings on websites and similar) used to attempt to sell a vehicle that was acquired/registered using the duty exemption;
- records showing when and why vehicles were either (i) not on the motor dealer's property or (ii) were being driven to prove no unauthorised use has occurred. For example:
- on display at: details of site/other dealership name;
- test drive by: name & licence details of driver;
- at mechanic: name of repairer & type of repair;
- being detailed by: name of detailer.
- vehicle/transaction records, including:
- make, model, and registration of vehicle;
- name and address of vendor;
- date of purchase;
- purchase price;
- odometer reading at time of purchase and sale;
- date of sale;
- sale price;
- name and address of purchaser;
- value of trade-ins;
- details of accessories, discounts and other non cash adjustments; and
- purchase receipts.
- a separate register recording details of vehicles accepted on consignment;
- a register showing that disposal notices are lodged within seven days of vehicles being sold, or otherwise disposed of.
The above is not intended to be an exhaustive list of records a motor vehicle dealer should maintain.