Sales/Use Tax

In accordance with Arizona state statute, Arizona State University is required to pay sales or use tax on the majority of its purchases and collect sales tax on its commercial transactions with customers external to the university. FIN 108 covers sales tax in general http://www.asu.edu/aad/manuals/fin/fin108.html.

Purchases of tangible personal property (goods, not services) are subject to state and city sales tax unless a specific exemption exists and a sales tax exemption claim has been properly completed and submitted to the vendor. The most common exemption claimed on university purchases is that for machinery and equipment used in research and development. Additional information about how to claim the exemption and restrictions that apply is available at http://www.asu.edu/aad/manuals/fin/fin120.html

ASU units that conduct sales activities must charge state sales tax and properly account for the sales and tax collected in accordance with arrangements made with Financial Services-Tax Unit. For advice on sales tax related responsibilities or to report new retail activities, please contact the Tax Compliance Analyst in Financial Services at 480.965.9890.

Use tax is paid on the cost of goods purchased from out of state vendors if the vendor does not collect Arizona state sales tax. P-card purchases of out of state goods are also subject to use tax. Use tax is assessed based on information received from the P-card database, which may or may not indicate whether state sales tax was already applied to the purchase. It is the responsibility of departmental reviewers to contact Financial Services to reverse use tax assessments on purchases that also included a sales tax payment.