Gasoline Purchased by Foreign Missions is Exempt From Tax

Purchases by certain foreign officials are exempt from Wisconsin sales and use tax, as provided by federal law. Foreign officials may also be exempt from gasoline and diesel fuel taxes.

The federal Office of Foreign Missions (OFM) authorizes an exemption from taxes imposed on purchases of gasoline and diesel fuel for foreign missions and their personnel by means of a tax-exempt fuel company credit card. With OFM's authorization, the credit card issuers are expected to exempt, on a mission's or an individual's monthly credit card bills, the taxes imposed on the purchase of fuel. Most tax-exempt fuel credit cards held by foreign missions and their members are issued by third parties, such as Citi (for Exxon and Shell), Fleetcor (for Chevron), or WEX (for Gulf and Sunoco).

Wisconsin allows an exemption from Wisconsin gasoline and diesel fuel taxes when the purchaser presents the appropriate exemption card sanctioned by the OFM or an OFM-approved credit card. Although a refund of the tax may not be claimed by the credit card company, the permitted fuel supplier (e.g., Exxon) may claim a credit on a subsequently filed Form MF-002. Complete Line 6 of Form MF-002 and attach the "Schedule of Transactions" (Form MF-002T, Box "8" checked).

Additionally, the sale of motor and diesel fuel is exempt from Wisconsin sales and use taxes if the Wisconsin excise tax (i.e., motor fuel tax) has been paid, regardless of whom the fuel is sold to (i.e., sold to either an exempt entity or a nonexempt entity).

If the excise tax has not been paid on the fuel (e.g., dyed diesel fuel for off-road use), the sale of the fuel would be subject to Wisconsin sales or use tax, except when an exemption applies. For example, if a foreign official that is exempt from Wisconsin sales and use taxes on his or her personal purchases provides the seller with his or her Diplomatic Tax Exemption Card, the fuel is not subject to Wisconsin sales tax.

October 31, 2016