My department purchases tangible personal property for resale to external (non-UC) customers, should my department pay sales or use tax?
No, if your department purchases tangible personal property for resale to external (non-UC) customers, your department is acting as a seller, therefore your department should obtain the Resale Certificate from the Controller’s Office before placing the order with the vendor. Once the Resale Certificate is presented to the vendor, the vendor will not charge sales tax on invoice. The Controller’s Office – Accounts Payable Unit also should not be accruing use tax on invoice when process payment for any purchases for resale. However, your department has the responsibility to collect the sales tax from the external (non-UC) customers and record the sales tax liability in general ledger.
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?
