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Sales Tax

Sales and Use Tax

Massachusetts applies a Sales Tax (6.25% for 2022) on the sales or rental charge of tangible personal property or certain telecommunications services sold or rented in Massachusetts. Harvard University, as an exempt organization, is exempt from collecting Sales Tax in Massachusetts, if the purchased goods are used for the organization's exempt purpose.

Massachusetts Use Tax is a (6.25% for 2022) charge on purchases of tangible personal property (including items purchased over the Internet) which are used, stored or consumed in Massachusetts. Harvard University, as an exempt organization, is exempt from collecting Use Tax, if the purchased goods are used in Massachusetts for the organization's exempt purpose.

Meals Tax

Massachusetts imposes a (6.25% in 2022) sales tax on meals sold by or bought from restaurants. Some cities apply an additional local option of 0.75%. Harvard University, as an exempt organization, is exempt from collecting Meals Tax on sales of meals to Harvard Students (see below).

Meals Tax Collection

More information is provided for the Harvard University community on the Meals Tax Collection document on SharePoint.

Sales Tax Collection

More information is provided for the Harvard University community on the Sales Tax Collection document on SharePoint

Purchasing for Harvard

More information is provided for the Harvard University community on the Purchasing For Harvard document on SharePoint.

Selling

The location where the sale finds place or where the tangible personal property is sold and/or used AND the exempt status of the organization in that State, determines if Sales tax will be added to the Sale.

Alaska, Delaware, Montana, New Hampshire and Oregon don't collect State sales tax to their purchases, but local municipalities or boroughs might charge sales tax. 

Reselling

In the rare circumstance that Harvard University purchase personal tangible property to resell it, (and it is not within the exempt purpose of the university), Harvard will need to provide the vendor with Form ST-4  ‘Sales Tax Resale Certificate'. This certificate relieves the vendor form the burden of proving that a sale or taxable service is not a retail sale.