Sales Tax or Use Tax?

Last updated November 16, 2009 9:19:46 AM PST

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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 8.75%. (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 rates for sales and use tax are the same, the way they are collected is different.

Sales tax:

UCSD pays sales tax on taxable purchases directly to California vendors or out-of-state vendors registered with the State Board of Equalization.
Generally, sales tax on invoices and receipts is listed separately from the price of the goods or service.
In some cases, vendors might include tax in the total of the invoice and not list it separately.

Use tax:

UCSD pays use tax on taxable purchases directly to the State Board of Equalization, rather than to the vendor. Use tax generally applies to out-of-state vendors who are not registered with the California State Board of Equalization.
You will not see use tax listed on invoices and receipts.
Disbursements accumulates use tax and pays it periodically. After it is paid, the amount is then charged to the department index.

Read the University of California Sales and Use Tax Manual for detailed information on the University's tax responsibilies.

For more information, contact Procurement & Contracts, (858) 534-3084, or Heather Vinograd, (858) 534-0451, for Disbursements topics.

Sales Tax or Use Tax?

Sales tax vs. use tax

Buy & Pay

Sales & Use Tax

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