My department purchases tangible personal property for resale to internal (other UCSF Departments) customers, should my department pay sales or use tax?
Yes, if your department purchases tangible personal property for resale to internal (other UC Department) customers, your department is acting as a purchaser for the other UC Department. If vendor does not charge sales tax on invoice, the Controller’s Office – Accounts Payable Unit will accrue use tax when process payment for any purchases of tangible personal properties for the University’s self-consumption. Pursuant to the University of California Sales & Use Tax Manual, Section 2-The University as Seller, Sales within UC, http://www.ucop.edu/ucophome/policies/sutm/sutm.pdf ) all internal transfers of merchandises between various departments within the UC are not deemed sales. UC is considered the consumer of these items. Sales tax applies to the purchase of the materials and supplies used in the production of goods by UC for transfers within the UC system. Sales tax does not apply to any mark-up charges or labor associated with the final products.
Related Questions
- My department purchases tangible personal property for resale to internal (other UCSF Departments) customers, should my department pay sales or use tax?
- Do I need to pay CAT on those gross receipts received from sales to customers where the tangible personal property was shipped outside Ohio?
- My department purchases tangible personal property for resale to external (non-UC) customers, should my department pay sales or use tax?
