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(Approved by authority of the President)
Purpose
The purpose of this policy is to define the University’s requirement to pay sales or use tax on purchases where required and to collect sales tax on sales of supplies and services where applicable.
Policy Statements
1. Required Sales Tax
The University is required to pay sales tax on purchases where required and collect sales tax on its sales of supplies and services (except for sales between University units and resale activities) in accordance with Chapter 82.08 RCW. For purchases, if sales tax is not collected by the seller and the good is to be used in the state of Washington, a use tax (equivalent to the sales tax) is then owed in accordance with Chapter 82.12 RCW and WAC 458-20-178. The current sales/use tax rate, which varies by taxing district, is available on Washington’s Department of Revenue website.
2. Applicability of Tax on Purchases―For Buyers
Typically, Washington state imposes a state sales tax on tangible personal property (can be seen, weighed, measured, touched, etc.), digital goods, and certain services. If you have specific questions regarding if a purchase is taxable, they should be addressed with the Tax Office for guidance. The UW Procurement webpage provides information and procedures to be used when sales tax is not added to paid purchases by invoice or card, and other requirements for recording and record maintenance.
3. Applicability of Tax on Sales―For Sellers
The state Department of Revenue webpage provides a list of frequently asked questions for businesses selling goods and services. Reach out to the Tax Office directly for questions regarding the taxability of the services being provided.
4. Reporting Sales Tax on Sales by University Units
University units that sell taxable goods or services are required to collect sales tax and report it to the Tax Office. The Cash Handling policy explains how University units should handle deposits, including the sales tax; however, the department will be responsible for ensuring that the sales tax payable is reclassed within Workday to ledger 20540 (Sales Tax Payable) on a monthly basis. If sales are made to non-Seattle locations, the department is required to provide a breakdown of the sales by locality/city, including the subtotal of sales (pre-tax), to the Tax Office for reporting purposes.
5. Reseller’s Exemption Form Letter
If you believe you qualify to purchase goods at wholesale to resell, contact the Tax Office to obtain a copy of the permit.
Responsible Office and Additional Information
For taxation questions related to the sale of goods and services, contact the Tax Office.
For general and procedure related questions regarding the purchase of goods and services, contact Payables Administration.
History
March 1988; December 9, 2003; [Formerly numbered APS 31.6] March 3, 2026.