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2810 Sales & Use Tax
Responsible Official:
Controller
Responsible Office:
Controller's Office
Effective Date:
February 28, 2019
Revision Date:
January 13, 2022
Policy Sections
2810.1 Sales Subject to Sales Tax
2810.2 Collecting, Recording, and Depositing Sales Tax
2810.4 Remittance of Sales Tax & Sales Tax Returns
Scope
This policy establishes the rules and processes supporting the University’s obligations with respect to Connecticut Sales and Use Tax (“Sales Tax”) on external sales. It applies to all Yale units and individuals selling goods and/or services in their official University capacity.
Policy Statement
As a seller of goods and services, the University is responsible for:
- determining when a sale is subject to Sales Tax;
- charging and collecting Sales Tax, when appropriate, from its customers;
- remitting the Sales Tax in a timely manner; and
- maintaining records that document the charging, collection, and remittance of Sales Tax with respect to its sales of goods and services.
Yale units and individuals selling goods and/or services share these responsibilities, as detailed in this policy.
Reason for the Policy
As a seller of goods and services, the University is responsible for complying with legal obligations concerning Sales Tax. This policy provides the foundation for compliance with those obligations.
Definitions
Connecticut Sales and Use Tax (“Sales Tax”)
The Connecticut Sales and Use Tax is the statewide tax rate imposed on the retail sale, lease, or rental of most goods and taxable services. The current Sales Tax rate is 6.35%, subject to specific exceptions*. Visit the Connecticut Department of Revenue Services website for further information.
* Note: Effective October 1, 2019, Connecticut tax legislation modifies to 7.35% the Sales Tax rate applicable to sales of meals and beverages sold by an eating establishment, caterer, or grocery store. For further information on the applicability of this Sales Tax rate, refer to Connecticut Department of Revenue Services Policy Statement 2002(2).
Policy Sections
Prior to selling any goods and/or services, the selling unit or individual must determine whether the proposed sale is subject to Sales Tax. The selling unit or individual is responsible for contacting and consulting with the University Tax Department in making this determination.
In certain instances, when the external customer is a tax-exempt organization or a reseller, collection of Sales Tax may not be required on otherwise taxable sales. In such instances, the selling unit or individual is responsible for collecting and retaining the appropriate exemption and/or reseller certificate(s) pertaining to such sales.
If a sale is subject to Sales Tax, the selling unit or individual must appropriately charge and collect the Sales Tax at the current rate. The selling unit or individual must also record the Sales Tax collection and deposit the collected funds promptly, in accordance with Procedure 2810 PR.01 Sales Tax Collection, Section 2.
All units and individuals with taxable sales receipts must report their Sales Tax activity each month, in accordance with Procedure 2810 PR.01 Sales Tax Collection, Section 3. A report is required even if there is no Sales Tax activity for a particular month.
The General Accounting Team, with review by senior leadership in the Controller’s Office, is responsible for the timely remittance of Sales Tax collected on University sales, in accordance with State requirements.
The General Accounting Team, with review by senior leadership in the Controller’s Office, is responsible for the timely preparation and filing the University’s Sales Tax returns, in accordance with State requirements.
Documentation in support of the charging (including, as applicable, exemption and/or reseller certificate(s)), collection, and remittance of Sales Tax with respect to the University’s sales of goods and services must be maintained in accordance with Policy 1105 Retention of University Financial Records.
Special Situations / Exceptions
Exceptions to this policy must be approved by the Controller’s Office, in consultation with the Provost’s Office, General Counsel, or an Officer of the Corporation, as appropriate.
Roles & Responsibilities
Controller’s Office, Senior Leadership
- Responsible for the content and oversight of this policy.
- Responsible for reviewing and approving exceptions, where appropriate.
- Responsible for reviewing the monthly Sales Tax reporting transmitted by the General Accounting Team.
- Responsible for reviewing and signing the University’s Sales Tax returns.
- Where appropriate, the Controller’s Office delegates authority to perform any function ordinarily performed by the Controller’s Office.
General Accounting Team
- Responsible for collecting monthly Sales Tax reports from University sellers.
- Responsible for transmitting monthly Sales Tax reporting to senior leadership in the Controller’s Office.
- Responsible for the timely remittance of Sales Tax collected on University sales and for the timely preparation and filing of the University’s Sales Tax returns, in accordance with State requirements.
- Responsible for maintaining Sales Tax records (pertaining to reporting and remittance), as required by Policy 1105 Retention of University Financial Records.
Selling Units and Individuals
- Responsible for determining whether proposed sales are subject to Sales Tax, prior to selling any goods and/or services. This determination is made in consultation with the University Tax Department.
- When applicable, responsible for collecting and retaining appropriate exemption and/or reseller certificate(s).
- For sales subject to Sales Tax, responsible for appropriately charging and collecting Sales Tax at the appropriate rate.
- For sales subject to Sales Tax, responsible for recording and promptly depositing the funds collected.
- Responsible for monthly reporting of Sales Tax activity.
- Responsible for maintaining Sales Tax records (pertaining to charging, collection, and, as applicable, exemption and/or reseller certificate(s)), as required by Policy 1105 Retention of University Financial Records.
University Tax Department
- Responsible for advising University sellers on the taxability of transactions.