{"id":20168,"date":"2024-05-20T15:48:20","date_gmt":"2024-05-20T19:48:20","guid":{"rendered":"https:\/\/marymount.edu\/?page_id=20168"},"modified":"2024-05-20T15:48:20","modified_gmt":"2024-05-20T19:48:20","slug":"sales-and-use-tax-collection-policy","status":"publish","type":"page","link":"https:\/\/marymount.edu\/faculty-and-staff\/financial-services\/finance-policies\/sales-and-use-tax-collection-policy\/","title":{"rendered":"Sales and Use Tax Collection Policy"},"content":{"rendered":"
May 2024<\/span>\u00a0<\/span><\/p>\n N\/A<\/span>\u00a0<\/span><\/p>\n University Financial Services<\/span>\u00a0<\/span><\/p>\n All employees are subject to this policy. \u00a0<\/span>\u00a0<\/span><\/p>\n Marymount University (MU) \u201cUniversity\u201d is committed to complying with applicable state and local sales tax laws and regulations. University requirements have been established for collecting, reporting, and remitting sales tax to avoid penalties for failure to timely file complete and accurate tax returns.<\/span>\u00a0<\/span><\/p>\n The University is exempt from paying sales and use tax on most of its purchases, but no similar exemption exists when the University is the seller. Consequently, the University must collect, report, and remit applicable sales tax to the Commonwealth of Virginia and to any state in which it has established economic nexus. University Financial Services files and remits sales tax on behalf of the University.<\/span>\u00a0<\/span><\/p>\n Activity Head<\/span><\/b>\u00a0<\/span><\/p>\n The individual responsible for a University unit or department that performs a service.<\/span>\u00a0<\/span><\/p>\n Economic Nexus<\/span><\/b>\u00a0<\/span><\/p>\n A financial connection between a state and a non-resident seller sufficient to permit the state to assert its taxing authority over the seller (as defined by the US Supreme Court). Economic nexus is established when a seller exceeds the threshold number of transactions and\/or dollar amount of sales in a given state. Once economic nexus is established, the state can require the vendor to collect and remit sales tax for products shipped into that state.<\/span>\u00a0<\/span><\/p>\n Foreign State<\/span><\/b>\u00a0<\/span><\/p>\n Any state or territory in the United States other than the Commonwealth of Virginia.<\/span>\u00a0<\/span><\/p>\n Tangible Personal Property<\/span><\/b>\u00a0<\/span><\/p>\n Property, other than real property, which may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. Under Virginia law, the term “tangible personal property” does not include stocks, bonds, notes, insurance, or other obligations or securities (as defined in VA Code \u00a7 58.1-602).<\/span>\u00a0<\/span><\/p>\n The University monitors foreign state sales to ensure that sales tax is collected and remitted at the correct rate in any jurisdictions where the University has established economic nexus. Departments and activity heads must collect Virginia state and local sales tax on behalf of the University for the sale of all tangible personal property, except for:<\/span>\u00a0<\/span><\/p>\n Except for tangible services such as restaurant meals and short-term lodging, collection of state and local sales tax is not required for sales of services. Some common examples of non-taxable services include, but are not limited to:<\/span>\u00a0<\/span><\/p>\n [Note: For a complete list of Virginia exemptions, refer to Title 58.1, Chapter 6 of the Virginia Code. For information on exemptions in foreign states, contact University Controller Office.]<\/span>\u00a0<\/span><\/p>\n University Financial Services Controller Office aggregates University sales tax receipts and electronically remits them to the appropriate tax authorities, including the Virginia Department of Taxation with full payment. The expense is charged to the respective departmental revenue accounts to recover the tax payments made on their behalf.<\/span>\u00a0<\/span><\/p>\n Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination or expulsion in accordance with relevant University policies.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" I.\u00a0 Effective Date\u00a0 May 2024\u00a0 II.\u00a0 Last Revision Date\u00a0 N\/A\u00a0 III.\u00a0 Responsible Party University Financial Services\u00a0 IV.\u00a0 Scope\u00a0 All employees are subject to this policy. \u00a0\u00a0 V.\u00a0 Purpose\u00a0 Marymount University (MU) \u201cUniversity\u201d is committed to complying with applicable state and local sales tax laws and regulations. University requirements have been established for collecting, reporting, and […]<\/p>\nII.\u00a0 Last Revision Date\u00a0<\/span><\/h2>\n
III.\u00a0 Responsible Party<\/h2>\n
IV.\u00a0 Scope\u00a0<\/span><\/h2>\n
V.\u00a0 Purpose\u00a0<\/span><\/h2>\n
VI.\u00a0 Policy Statement\u00a0<\/span><\/h2>\n
VII.\u00a0 Definitions\u00a0<\/span><\/h2>\n
VIII. \u00a0Policy \u00a0<\/span><\/h2>\n
\u00a0 A.\u00a0 Collection<\/h3>\n
\n
B. \u00a0Exceptions for Collecting Virginia Sales Tax\u00a0<\/span><\/h3>\n
\n
C. \u00a0Reporting Sales Tax\u00a0<\/span><\/h3>\n
\n
\nThe department or activity head must report and submit to University Controller any sales tax, even if there have been no sales for that month. \u00a0A copy must be retained in the department, together with the purchaser sales tax exemption certificates, if any, relating to such sales.<\/span>\u00a0<\/span><\/li>\n
\nThe department or activity head must track and report any sales shipped into foreign states to University Controller. Foreign state sales must be submitted no later than the sixth day of the month following the month of the sale. University Controller will assist in identifying taxable sales in jurisdictions where the University has established economic nexus.<\/span>\u00a0<\/span><\/li>\n
\nAny department failing to meet the monthly reporting deadline will be charged for any resulting late charges assessed to the University.<\/span><\/li>\n\n
\n
D. \u00a0Remittance of Sales Tax Receipts\u00a0<\/span><\/h3>\n
E. \u00a0Compliance with Policy\u00a0<\/span><\/h3>\n