#  Sales Tax 

 



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General information on Harvard's tax obligations on goods and services.

**General Information**

Massachusetts sales tax is 6.25% of:

- The sales or rental charge of tangible personal property, or
- Certain telecommunications services sold or rented in the Commonwealth of Massachusetts (e.g. telephone)

**Harvard Tubs Purchasing Goods or Services**

- Harvard is exempt from paying Massachusetts state sales tax on the goods and services it purchases
- Harvard also has sales tax exemptions in many (but not all) states
- Refer to the Office of Procurement Management's online [Procurement Manual](http://internal.procurement.harvard.edu/tax-forms) for specific rules and printable sales tax exemption forms for Massachusetts and other states

**Harvard Tubs Selling Goods or Services in Massachusetts**

- Tubs are required to collect Massachusetts sales tax equivalent to 6.25% of the sale price of certain goods and services they sell
- Tubs then deposit the proceeds from the sale plus the sales tax into the University’s Mass Taxable Sales bank account and retains a validated copy of the bank deposit ticket. Deposit tickets can be obtained from the Cash Management Office by contacting 6-0853.
- Tubs then forward the validated bank deposit ticket along with completed Massachusetts Taxable Sales Deposit Forms to the Cash Receipts Office before Cash Receipts' month-end deadline for the month in which the sales were made
- After each month-end close, Tax Services calculates the sales tax for that month and remits the tax for the entire University to the Massachusetts Department of Revenue

Example:

> TPC sells a $2,000 computer to a student on October 9
> 
> TPC charges the student $2,100 ($2,000 plus $100 sales tax)
> 
> TPC deposits the $2,100 in its bank account and retains the deposit receipt from the bank
> 
> TPC then sends the bank deposit receipt along with a completed Massachusetts Taxable Sales Deposit Form to Cash Management in time for Cash Management to input the data before the October close

**Harvard Tubs Selling Goods or Services Outside Massachusetts**

- Depending on the state and the type of goods or services sold, Harvard may be required to collect and pay sales tax on sales occurring outside Massachusetts
- [Contact Tax Services](/pages/contact) for additional information

**IMPORTANT:**

- Tubs must send the bank deposit receipt and deposit form to Cash Receipts in time for Cash Receipts to input the data before the closing for that month
- All charges for tax, interest and penalties due to late receipts will be charged back to the Tub responsible for submitting the late receipts
- Any interest and penalty charges incurred due to the late submission of a bank deposit receipt will be charged back to the Tub that submitted the late receipt



 



 

 See also:- [ How To ](/resource-type/how)
- [ Taxes ](/service-units/taxes)
- [ University Tax Issues ](/topic/university-tax-issues)