After charges are reviewed in PCS and account number changes have been made as necessary, sales tax needs to be reviewed. The Citadel must pay Use Tax (7.5%) on purchases from out-of-state vendors that do not collect sales tax however, no sales tax is paid on registration, resale items, services, or labor charges (if labor charges are listed as a separate item from material).

The following rules apply to the sales tax code in PCS:

• If the vendor included 7.5% sales tax, the correct code is "Y".
• If the vendor did not include 7.5% sales tax on the invoice, and is out-of-state, the correct code is "N".
• If the vendor did not include 7.5% sales tax on the invoice, and is in-state, the correct code is "Y". The vendor is responsible for the tax, but must be contacted and told we should be charged the 7.5% tax.
• If the invoice is for labor charges only, the correct code is "Y".
• If the invoice is for labor and material and the vendor did not include tax on the invoice, the correct code is "N".
• If the items purchased are for resale, the correct code is "Y".
• If the purchase is a service, the correct code is "Y".
• If the vendor included only a portion of the tax, not the full 7.5% please contact the vendor for them to corret the invoice and keep sales tax "Y".

When you use the code "N" on purchases, the appropriate account will be charged sales tax. All updates to the PCS system must be made by the date given by Procurement for changes to be completed.

If it is necessary to contact the vendor, please notify Rosalin Speed (rosalin.speed@citadel.edu) and note the information on your invoice.