Procurement Card Tax Process
This page will provide insight as to how the tax system functions with Concur, as well as tips for navigating the tax system. Follow the steps provided in the drawers to determine if Use Tax will be assessed for your expenses.
Sales Tax and Use Tax information for Concur is subject to change
Although the rate for California sales tax and use tax is the same, the way that the tax is collected and handled differs. 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.)
Sales Tax
- UC San Diego 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.
Use Tax
- UC San Diego 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.
- Use tax is also applied when sales tax is not properly applied
How will Use Tax be applied for Concur expenses?
Use tax will be calculated once the expense report is in Oracle based on the taxability of the Account value, Sales Tax Paid, Tax Exempt Code, or Ship-To Zip code entered in Concur. Use tax is not captured in Concur so you won't see any use tax calculated in Concur.
Concur transactions will use OneSource in Oracle to calculate use tax based on what was entered in Concur (Expense Type, Sales Tax Paid, Tax Exempt Code, and Ship-To Zip code).
For a more in-depth explanation of Sales and Use Tax, see Sales & Use Tax Overview.
The below steps should be followed sequentially to determine how/if Use Tax is calculated on your Concur Expense Report.
Review the Concur Tax Process Promapp
Our Promapp provides a streamlined version of the information on this page.
1: Choose an Expense/Expenditure Type
With the exception of Travel (which bases the Account value for each expense off the Trip Type), the Expense Type selected in Concur will directly affect the taxability of each expense as each Expense Type is tied to a specific Account value.
If the selected Expense Type is taxable, the system will look for an amount of Sales Tax paid (see instructions below) to determine if Use Tax needs to be applied. If the Expense Type chosen is non-taxable, the system will not look for anything else.
2: Enter in Sales Tax Paid
Note
For reporting purposes, the Sales Tax must be entered if applicable, even if the Expense Type selected is non-taxable. There is no exception to this.The second phase in the process is to enter the amount of Sales Tax that was paid where specified in Concur.
The total amount of the expense, including Sales Tax, should be entered in the Amount field in Concur. The amount entered in the Sales Tax on Receipt field represents a portion of the total amount of the expense that was paid in tax. This should not be considered an "add-on" to the total amount of the expense. For example, entering $100 into the Amount field and $7.75 in the Sales Tax on Receipt indicates that out of the $100 spent, $7.75 of that amount was Sales Tax.
3: Tax Exempt Code (When Applicable)
*Note: IPPS cannot advise on the usage of a Tax Exempt Code or if your expense is taxable or non-taxable. Please speak to your Fund Manager or Financial Unit Approver for advice on whether to use this feature.
If you believe that your expense is not taxable, best practice is to use a non-taxable Expense Type. However, if there is no suitable non-taxable Expense Type and you did not pay any Sales Tax on your expense, you can use the Tax Exempt Codes to override the tax system and indicate that no Use Tax should be assessed for your expense. There are currently 6 different Tax Exempt Codes in Concur:
- Downloadable Materials - Only used for non-tangible downloaded materials.
- Item Delivered to Another State - The purchase will be delivered to another state or country and will remain there permanently.
- Item Owed by the Federal Government - This deems the purchase tax-exempt.
- Item Purchased by Resale - This deems the purchase tax-exempt.
- Non-taxable field expenses - Do not use unless authorized.
- Research Publication Fee - Only used for non-tangible publications.
Use Tax Correction Process
To learn more about the Use Tax Correction process, please visit the Concur Tax Process Blink page for information on how to submit Use Tax Corrections.