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ACCOUNTS RECEIVABLE

Sales Tax for Safekeeping Accounts

Safekeeping groups are not nonprofit groups and are not exempt from paying sales tax on purchases of items for the group. No one, regardless of non-profit status, is exempt from collecting and remitting sales tax to the State of Kansas on the sale of tangible items (t-shirts, mugs, etc.) or event admissions. You must ensure that sales tax for your group's activities is collected and accounted for as required by WSU’s Office of Financial Operations & Business Technology.

When purchasing products to resell, we suggest using a Resale Exemption Certificate* so that sales tax is only paid on the final part of the transaction (the purchase of the item by the end buyer).

Purchases for the group's use, not for resale, are subject to sales tax. For example, sales tax would be owed when ordering food from Sodexo or going bowling. If the invoice you receive does not include sales tax, ask for a new one that does include it. As part of the check request process, Accounts Receivable will verify that sales tax is correctly applied.

Contributions to safekeeping groups are not subject to sales tax. Please note that contributions are not tax-deductible for the giver, as safekeeping groups are not nonprofit organizations. For more information on contributions, please see Accepting Contributions.

References:
Sales Tax Fundamentals*

Questions? Contact Accounts Receivable at 978-3333.

* This link leaves the WSU Accounts Receivable website.