IronPlanet: Sales & Use Tax

See our FAQs below for information on Sales & Use Tax in the U.S. as well as specific to the state of California.

Sales Tax collection procedures

IronPlanet calculates and collects sales tax on items sold from the U.S. and Canada based on the state and local tax rates in effect at the location of the items purchased.

What does this mean for me as a buyer?

Dealers and Resellers – IronPlanet will not collect sales tax if: (1) you are a dealer or reseller, and (2) you have provided IronPlanet with a current valid sales tax resale exemption certificate from the state where the equipment was located at the time you purchased it or if you have other valid state reciprocity exemption paperwork. If you have not provided this documentation to us already, you can upload your resale exemption certificate or reciprocity paperwork at the time of check out or on your My Account page.
International Buyers – IronPlanet will not collect sales tax if you are an exporter or buyer based outside of the country where the purchased item is located and you provide a preliminary Bill of Lading (“BOL”) at the time of pick-up showing that the item is destined to the port for export. You will then be required to provide proper documentation of delivery of the item, such as a completed BOL to the port or border, and export documentation, like an Ocean BOL (or other documentation supporting a continuous process of export). For example, exporting to Mexico would require a Pedimento.
1. This documentation is required within two (2) business days of delivery of the item to its final international destination, or you will be invoiced for sales tax due on the transaction based on the location of the purchased item.
2. If proper documentation is not received in a timely manner for all purchases, you will be invoiced for the sales tax based on the location that the item(s) were sold from, and IronPlanet reserves the right to charge sales tax at the time of sale on future purchases.
Non-Exempt Buyers Shipping Out-of-State with a Common Carrier – IronPlanet will calculate and collect sales tax based on the tax rates in effect at the location of the item you purchased if you are a non-exempt buyer transporting your items across state lines with a common carrier transportation company.
1. You have 10 business days to notify IronPlanet that you have transported the equipment to a state other than the one from where it was purchased and to request a sales tax adjustment. This is done by submitting a Bill of Lading, using the process described below, or other valid proof of transportation.
2. Note that in cases where the destination has higher sales tax rates, IronPlanet is required to collect the additional sales tax.

How do I obtain a sales tax refund or pay for an increase adjustment?

If you have an exemption certificate that was not submitted at the time of sale:

You can request a sales tax refund or adjustment from your My Account page: Click on “Adjust sales tax” in the Buying section and upload a valid sales tax exemption certificate.
You have 10 business days from your date of purchase to submit a valid exemption certificate in order for IronPlanet to process a refund. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by IronPlanet.

If you transported your purchased item across state lines with a common carrier transportation company:

You can request a sales tax refund or adjustment from your My Account page: Click on “Adjust sales tax” in the Buying section and upload a Bill of Lading.
You have 10 business days from your date of purchase to submit a bill of lading in order for IronPlanet to process a refund or an adjustment. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by IronPlanet.
If your items are being shipped to a destination with a higher sales tax rate, IronPlanet will issue a new invoice to you for those additional taxes.

How long will it take to receive my refund or adjustment from IronPlanet?

IronPlanet will process your sales tax refund or adjustment within 15 business days of receiving your request along with complete and valid documentation. It will reach you shortly thereafter depending on how you choose to receive the adjustment. If you paid for your purchase by credit card, your refund will be made to the card used in the purchase. Otherwise, you may choose to be refunded by check or wire. Please ensure your check or wire instructions are complete and accurate; otherwise, your refund may be delayed.

Who can I speak to if I have questions?

Please contact us by phone at 1.800.211.3983 or via email at customercare@ritchiebros.com

I’m a seller based in the EU – how will the DAC7 regulations affect me?

To learn more about the DAC7 regulations and how they can affect you as an equipment seller, click here.

Sales & Use Tax (U.S. except California)

Can I submit dealer/reseller tax exemption documents before making a purchase?

Yes, you definitely can ! We encourage our buyers to submit all valid dealer license/reseller tax exemption documents in advance if they are eligible for sales tax exemption. This will expedite the sales tax exemption process for you! Once the tax documentations have been reviewed and verified by a Customer Care representative, your account will be set-up to apply sales tax exemption for the respective state(s) for the calendar year. When it comes time to check-out, you can select the eligible tax documentations on file to have tax automatically adjusted on your invoice. To upload the tax exemption documents, go to the Tax Certificate section of MyAccount. Watch the video below for more info.

I have sales tax exemptions for multiple states, can I submit tax exemption documents in advance?

Yes, you certainly can! Complete the relevant tax forms and upload all the applicable tax certificates under the Tax Certificate section of MyAccount. Once the tax documentations have been reviewed and verified by a Customer Care representative, your account will be set-up to apply sales tax exemption for the respective state(s) for the calendar year.

If you are a buyer who has a state reseller exemption but have purchased an item outside of the respective state, you will need to provide a supplemental document (if required by the state of purchase) for non-resident reseller . Common supplemental documents are:
• Uniform Sales & use Tax Certificate (MJST)
• Streamlined Sales and Use Tax Agreement (SSUTA)

How to Upload Your Equipment Sales Tax Exemption Documents

Can I view tax certificates that I previously uploaded?

You can view previously uploaded tax certificates in the tax certificate section of MyAccount.

What purchases are subject to sales or use tax?

Retail sales of tangible personal property in most states are generally subject to sales tax. Construction equipment is generally considered tangible personal property. In some instances, retailers must collect use tax, rather than sales tax. A common example of a purchase subject to the use tax is a purchase of an item for use in California from an out-of-state retailer. The tax rate for sales and use taxes are generally the same.

Are sales and use tax rates and regulations the same between and among the different states?

No, sales tax rates and regulations vary greatly from state to state.

Do all states levy sales and/or use tax?

No, there are five states that do not have sales/use tax regulations; these are Alaska, New Hampshire, Montana, Oregon and Delaware.

Will I pay sales tax if I buy a titled vehicle in Florida?

Unless you are a Licensed Vehicle Dealer in the United States, we are collecting sales tax for the state of Florida. However, if you are exporting your vehicle outside the United States, we will refund the Florida sales tax after you send us the corresponding export documents.

**NOTE – You will be charged taxes (VAT) for items located in Mexico and titled vehicles located in Florida. Once proper documentation is provided IronPlanet will issue a refund.

When can I claim a valid exemption from Sales and/or Use Tax and where do I send my completed documents?

You may be exempt from sales tax if you meet all the following criteria:

You are a reseller of like-kind equipment as the equipment you just bought; and
You have a valid Seller Permit (or its equivalent) from your state; and
3. You have completed the Exemption or Resale Certificate for your state and submitted it to IronPlanet via fax 925-660-3020 or email to SalesTax@Ritchiebros.com; and
You have submitted a Bill of Lading from a common carrier for shipment of your purchase.

Sales & Use Tax in California

I hold a valid California Seller’s Permit. What must I provide to IronPlanet to avoid sales tax on purchase of equipment located within California?

California resellers can submit to IronPlanet a completed California Resale Certificate, with their Seller’s Permit Number. Each item purchased requires its own Resale Certificate, which is available on our website upon the completion of the auction for an item. Each certificate will include instructions to print, sign and where to fax it to us.

I do not have a California Seller’s Permit. Can I still use the California Resale Certificate to avoid sales tax?

No. Only California retailers who have registered with the State of California and obtained a Seller’s Permit can use the California Resale Certificate.

I believe I am eligible for a Partial Exemption from California sales tax. What do I have to submit to IronPlanet so I get my partial sales tax exemption calculated on my auction invoice?

You will find the required form(s) at the California State Board of Equalization website. Complete the documentation that applies to your situation and fax it to IronPlanet at 925-225-8620 immediately after notification of being the successful winner of equipment on which you have bid.

I am a licensed California contractor but do not have a California Seller’s Permit. If I buy equipment located in California, is my purchase taxable?

Yes. If you purchase construction equipment that is located in California, your purchase is taxable.

I am not a California reseller, but plan to move my California equipment purchase outside of the United States, do I have to pay sales tax on my purchase?

Since you are not a California reseller, IronPlanet initially will have to charge sales tax on your purchase. After you submit either a Bill of Lading or export documents that clearly substantiate that your purchased equipment has reached a destination outside of California, your sales tax deposit will be 100% refunded. Fax your Bill of Lading or export documents with the six-digit IronPlanet Item number to our dedicated fax number 925-225-8620.

I do not have a California Seller’s Permit. I am planning to move equipment I just purchased in California to another state, do I have to pay California sales tax?

Initially, yes, but only as a temporary deposit until the equipment leaves the state. At the time of purchase, you will have to deposit 100% of the applicable California sales tax to IronPlanet. If you use a common carrier to transport the equipment out of California you can will get a full refund of your sales tax deposit after submitting a completed Bill of Lading showing the equipment pickup location and destination.

How much time does it take for my sales tax refund to be processed after I provide the Bill of Lading?

Wire transfer refunds will be processed within 24 hours (one business day) after IronPlanet receives the Bill of Lading, Resale Certificate, and your wire transfer instructions. Refunds requested paid by company check can take up to 5 business days prior to mailing.

Where should I submit my Bill of Lading and/or Sales Tax Exemption documentations to ensure I receive my tax refund?

Please upload your Bill of Lading and/or sales tax exemption documents to MyAccount (click here to learn how to upload your sales tax exemption documents)