Sales Tax when Harvard is the seller

Sales tax: a state tax levied on certain tangible personal property and telecommunication services.

Harvard's Tax Reporting Department is responsible for answering any questions related to sales tax and for preparing and filing monthly sales tax returns. 

Harvard units that sell tangible personal property or telecommunication services are expected to know and understand the general laws related to such sales, including licensing and tax requirements. The Massachusetts Guide to Sales and Use Tax lays out the requirements in a clear and user friendly fashion. 

Harvard units that sell tangible personal property or telecommunication services are also expected to know and understand Harvard's policy, "Tax Compliance for External Income-Generating Activities in the U.S."

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 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

Please note: Harvard University as an institution does not advise on any personal income tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance.