Bill of Sale (Credit for Vehicle Sold) is the Arkansas Department of Finance and Administration (DFA), Revenue Division, form that documents the sale of a vehicle so the seller can claim a sales and use tax credit toward a replacement vehicle. It serves a consumer who sells a used motor vehicle, trailer or semi trailer within 60 days before or after buying another one; the buyer and the seller must both sign it. On FillingPDF you can fill out the form online and download or print the completed PDF. The DFA publishes the original, and the credit itself is taken at a local Revenue Office when the replacement vehicle is registered.
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What is Bill of Sale (Credit for Vehicle Sold) – Arkansas?
Bill of Sale (Credit for Vehicle Sold) is the Arkansas Department of Finance and Administration (DFA) form that documents a used vehicle, trailer or semi trailer sale, so the seller can claim a sales and use tax credit on a replacement vehicle.
The form is issued by the DFA Revenue Division and is printed with the note that it is for a vehicle claimed as a tax credit toward the purchase of a replacement vehicle. It records the purchaser, the seller, the vehicle sold (year, make, model, VIN and odometer reading), the date of sale and the sale price, and it carries a sworn acknowledgement from each side. The credit rests on Act 1232 of 1997, as amended by Act 277 of 2021, and is figured the same way as the trade-in credit given to consumers who trade in a vehicle.
The instructions printed with the form say that only a consumer whose name is on the title of the vehicle sold can take the credit. A consumer is any private individual, business, organization or association. A settlement payment from an insurance company does not count as a sale for this credit.
The DFA lists two neighboring documents separately on its motor vehicle forms page: the Vehicle Bill of Sale / Odometer Disclosure Statement, and the Claim for Sales and Use Tax Refund: Credit for Sale of Used Vehicle. This form is the bill of sale that supports the credit; the refund claim is a different form.
Who needs to file Bill of Sale (Credit for Vehicle Sold) – Arkansas?
A consumer who buys a new or used motor vehicle, trailer or semi trailer on or after July 28, 2021, and who sells a used motor vehicle, trailer or semi trailer within 60 days before or after the date of that purchase, uses this bill of sale to support the credit. The seller and the buyer of the vehicle sold must both sign it.
Conditions in the DFA instructions:
- Only a consumer whose name is on the title of the vehicle sold can take the credit. "Consumer" means any private individual, business, organization or association.
- The credit cannot be transferred to a consumer who did not have title to the vehicle that was sold.
- A settlement payment received from an insurance company does not qualify as a sale for this credit.
Consumers who sell a vehicle after they have already registered and paid tax on the other vehicle can still ask for a refund. That route uses a refund claim form from the local Revenue Office, and a copy of this bill of sale is required with it. The form does not describe any representative signing for a party; both parties sign for themselves.
When to file Bill of Sale (Credit for Vehicle Sold) – Arkansas
Present the bill of sale when you register the replacement vehicle at your local Revenue Office, if the old vehicle has already been sold. The sale of the used vehicle must fall within 60 days either before or after the date you purchased the new or used vehicle, trailer or semi trailer, and the purchase must be on or after July 28, 2021.
If you sell the old vehicle after you have registered and paid tax on the other one, a refund may be requested instead. In that case the sale must take place within 60 days of the date the other vehicle was purchased, and a copy of the bill of sale is required with the refund claim.
Have the form signed by every party before you go: without a bill of sale signed by all parties that shows the total consideration paid to the seller, tax is due on the total consideration paid for the new or used vehicle, trailer or semi trailer, with no deduction for the vehicle sold.
Documents you need
- Refund claim form, obtained from your local Revenue Office when you register the new vehicle: needed only if you sold the vehicle after registering and paying tax on the other vehicle.
- A copy of this signed bill of sale, to be presented at the Revenue Office when registering the new vehicle, or kept with the refund claim if you request a refund.
How to fill out Bill of Sale (Credit for Vehicle Sold) – Arkansas
Enter the purchaser's name and phone
Under Purchaser(s) Name(s), write the name of each buyer of the vehicle sold, and add the Phone Number.
Enter the purchaser's address
Write the purchaser's Address and the City, State, Zip on the lines under the purchaser block.
Enter the seller's details
Under Seller(s) Names, write each seller's name, then the seller's Address and City, State, Zip. The seller should be the consumer whose name is on the title.
Describe the vehicle sold
Enter the Year, Make, Model of Vehicle Sold, then the Vehicle Identification Number (VIN) and the Odometer Reading.
Enter the sale date and price
Write the Date Vehicle Sold and the Sale Price. The price should reflect the total consideration paid to the seller.
Have the purchaser sign and date
Each purchaser signs and dates the Purchaser's Acknowledgement, which affirms the information is true and correct.
Have the seller sign and date
Each seller signs and dates the Seller's Acknowledgement, which affirms the vehicle was owned and sold by the seller and that the seller is entitled to the reduction under Act 1232 of 1997, as amended.
Review, download and copy the form
Check that every line is complete and both sides have signed, then download or print the completed PDF from FillingPDF. Make a copy for the purchaser and one for the seller, and take a copy to your local Revenue Office as described under How to submit.
How to submit Bill of Sale (Credit for Vehicle Sold) – Arkansas
The bill of sale is presented in person at your local Revenue Office, either when you register the replacement vehicle or with a refund claim.
- Credit at registration: if the old vehicle has already been sold, bring a copy of the signed bill of sale to your local Revenue Office when you register the new vehicle. The instructions say this gives you the tax savings immediately.
- Refund after registration: if you sold the vehicle after registering and paying tax on the other one, pick up a refund claim form from your local Revenue Office when you register your new vehicle. A copy of the bill of sale for the vehicle sold must go with the claim.
Give a copy of the completed form to both the purchaser and the seller. The form prints no mailing address, portal or fee for the bill of sale itself; the DFA publishes its motor vehicle forms at https://www.dfa.arkansas.gov/office/motor-vehicle/motor-vehicle-forms/. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Having only one party sign. Both the seller and the buyer must sign the bill of sale for the seller to receive the credit.
- Leaving out the sale price. Without a bill of sale signed by all parties that shows the total consideration paid to the seller, tax is due with no deduction for the vehicle sold.
- Treating a settlement payment from an insurance company as a sale; it does not qualify for this credit.
- Selling the old vehicle more than 60 days before or after the purchase of the other vehicle, which falls outside the credit window.
- Claiming the credit when your name is not on the title of the vehicle sold; the credit cannot be transferred to a consumer who did not have title.
- Expecting the credit for a purchase made before July 28, 2021; the instructions cover purchases on or after that date.
- Not giving a copy of the form to both the purchaser and the seller, as the instructions ask.
- Entering false information on the form. Both acknowledgements warn that a false statement to evade tax is a felony under Arkansas law punishable by fine, imprisonment, or both.
Frequently asked questions
What is the Arkansas Bill of Sale (Credit for Vehicle Sold)?
It is a Department of Finance and Administration (DFA) form that documents the sale of a used vehicle, trailer or semi trailer so the seller can claim a sales and use tax credit toward a replacement vehicle under Act 1232 of 1997, as amended by Act 277 of 2021.
Who has to sign this bill of sale?
Both the seller and the buyer must sign. The instructions state that both names must be signed on page 1 for the seller to receive the credit, and the bill of sale must show the total consideration paid to the seller or tax is due with no deduction.
Is this bill of sale the same as the DFA Vehicle Bill of Sale / Odometer Disclosure Statement?
No. This form is printed for a vehicle claimed as a tax credit toward a replacement vehicle. The DFA lists a separate Vehicle Bill of Sale / Odometer Disclosure Statement on its motor vehicle forms page, so choose the form that matches your purpose.
How long do I have to sell my old vehicle to get the credit?
The sale must be within 60 days before or after the date you purchased the new or used vehicle, trailer or semi trailer, and the purchase must be on or after July 28, 2021. For a refund after registering, the sale must be within 60 days of the other vehicle's purchase.
Does an insurance settlement count as a sale for this credit?
No. The DFA instructions say a settlement payment received from an insurance company does not qualify as a sale for this credit. The credit applies when you sell a used vehicle, trailer or semi trailer and your name is on its title.
Where do I take the bill of sale to get the tax credit?
Take a copy to your local Revenue Office when you register the new vehicle, if the old vehicle has already been sold. The instructions say this gives you the tax savings right away. The form prints no mailing address or online channel.
What if I sold the old vehicle after I paid tax on the new one?
You can ask for a refund. Pick up a refund claim form from your local Revenue Office when you register the new vehicle, and include a copy of the bill of sale. The sale must be within 60 days of the date the other vehicle was purchased.
Can I fill out this bill of sale online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the form or claim the credit; you present it at a Revenue Office through the DFA's channels.
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