Sales tax plays a critical role in ensuring compliance with state and local tax regulations.

For employees at Indiana University, understanding how to accurately record, process, and remit sales tax is essential to maintaining financial integrity and meeting the university’s reporting obligations. This section of the book will guide units through the procedures for handling sales tax in two key areas: paying sales tax on purchases and collecting and remitting sales tax on taxable sales. It also outlines how to record these transactions using the university’s financial systems. By following these guidelines, units can ensure consistent and compliant handling of sales tax across all financial activities.

Policies

Review the below policies related to recording and processing sales tax:

• FIN-ACC-350: Accrual Accounting
• FIN-TRE-120: Processing Revenue
• FIN-TRE-121: Establishing and Modifying Revenue-Producing Activities (RPA)

Standards

Review the below standards related to recording and processing sales tax:

• TSOPs

Checklists

There are no checklists related to this portion of the book at this time. Please check back in the future!

TRAINING MATERIALS

There are no training materials related to this portion of the book at this time. Please check back in the future!

OTHER RELATED MATERIALS

Review the below other materials related to recording and processing sales tax:

• Form: ST-105 Certificate
• Reference Document: State Sales Tax Certificates Matrix Excluding Indiana
  
• Reference Document: Indiana Sales Tax Collections Matrix

IU Financial system reports and procedures

There are no IU financial system reports and procedures related to this portion of the book at this time. Please check back in the future!