Sales Tax or Use Tax?
Last updated
June 27, 2011 8:36:45 AM PDT
If you purchase goods and services for your department, read this page to understand the difference between sales tax and use tax.
UCSD is subject to California sales or use tax on the purchase of goods and services considered taxable by the California State Board of Equalization.
The state sales or use tax rate for the County of San Diego is 7.75%. (The only exceptions are the cities of El Cajon, La Mesa, National City, and Vista. Read more about these exceptions.)
Sales tax vs. use tax
Although the rate for California sales and use tax is the same, the way the tax is collected and handled differs.
Sales tax:
- UCSD pays sales tax on taxable purchases directly to California vendors and out-of-state vendors registered in California to collect sales tax.
- Generally, sales tax on invoices, credit memos, and receipts is listed separately from the price of the goods or service.
- In some cases, vendors might include sales tax in the total amount of an invoice, credit memo, and receipt and not list it separately.
Use tax:
- UCSD pays use tax on taxable purchases from non-California vendors directly to the state Board of Equalization on a quarterly basis, rather than to the vendor at the time the invoice is paid.
- However, use tax is charged to the department index(es) when the invoice is paid or credit memo applied and for Express Card receipts to/from the vendor (accrued for future remittance to the state Board of Equalization).
- You will not see use tax listed on invoices, credit memos, and receipts.
Read the University of California Sales and Use Tax Manual for detailed information on the University's tax responsibilities.
