Accounting Handbook: Sales & Use Tax

Accounting Handbook: Sales & Use Tax

December 3, 2019 0 By Kody Olson


ACCOUNTING HANDBOOK QUICK LOOK:
Sales & Use Tax Do you handle catering and merchandise or
auction sales for your department? If you purchase meals, beverages, or merchandise and then re-sell them to attendees at events, the Sales & Use Tax procedures apply to you CU is generally exempt from most federal taxes
and from Colorado state and local government sales tax However, organizational units need to understand
the circumstances when they are responsible for remitting sales and use tax. Let’s take a quick look at what that means. To be tax exempt, 2 conditions must be met: The item must be purchased for the exclusive
use of the University – meaning the item will not be re-sold AND The item must be purchased using a University
Procurement Card or Purchase Order. This means you didn’t pay personally for
the item and then request reimbursement. CU’s Sales & Use Tax procedures cover:
Definitions, General Requirements,
Sales Tax Procedures, Sales Tax and Fundraising Events,
and Specific Roles and Responsibilities. To find out more, see the Accounting Handbook
chapter on Sales & Use Tax. If you have any questions,
Contact your campus controller’s office.