DALLAS, Nov. 22, 2016 /PRNewswire/ -- Recently, Volkswagen (VW) reached a settlement with Federal and California regulators, whereby it agreed to make cash payments to certain VW and Audi diesel owners. In an effort to avoid any confusion, on November 18, 2016, the Wisconsin Department of Revenue (Department) issued a press release on the sales tax implications of this settlement for Wisconsin residents. Under the settlement, owners have the option to sell their car back to VW or retain the car and receive cash and emissions modifications from VW. Below is the sales tax guidance provided by the Department for each option: Selling Car Back to VWIf the owner chooses to sell their vehicle back to the manufacturer e.g. VW, the sale will not be subject to tax. Furthermore, no refund of the sales tax paid on the original purchase may be claimed by VW, the dealer or the owner. If the owner uses the VW payment to purchase another vehicle, the full purchase price is subject to tax and no trade-in allowance is allowed because the vehicle is being sold back and not traded in. Keeping Car and Receiving Cash/Emissions ModificationThere is no sale taking place in this instance and therefore, there are no sales tax implications. The Department further stated that any questions regarding the settlement should be directed to the attorney who negotiated the agreement with VW or to the Federal Trade Commission. Contact information for these parties can be found in in the Department's press release. About RyanRyan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
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