Does your unit sell tangible personal property to external parties (including students, faculty, and staff)? If so, here are a few key points to keep in mind regarding sales tax collection and reporting requirements:
- If a unit sells tangible personal property to an external party (including students, faculty, and staff), then those sales are typically considered to be taxable sales.
- Units making taxable sales are responsible for collecting the appropriate amount of sales tax and reporting it to UAFR (which then remits it to the applicable taxing authority).
- Taxable sales primarily occur within self-supporting funds, but they may also occur in other fund types as well (such as a gift fund, when some sort of charitable fundraising activity is taking place).
- For further guidance related to collecting, reporting, and remitting sales taxes, refer to Collect and Report Sales and Use Tax and Section 18.6 – Sales and Use Tax within the Business and Finance Policies and Procedures.
Contact
For further details, contact the applicable subject matter experts listed in the Who to Ask list by searching on “Sales Tax”.
