Handbook of Business Procedures
April 15, 2011
April 15, 2011
Financial Accounting Services
5.5.1. RECORDING SALES TAX DEPOSITS IN *DEFINE
A. Calculation of Sales Tax
The tax must be calculated based on taxable sales and the applicable tax rate. Taxable and nontaxable sales should be included on the same *DEFINE VC1 document but should be listed on separate lines.
B. Remittance of Sales Tax
Sales tax receipts are remitted to the state within three days of collection.
Standards for all sales tax deposits:
1. Required Documents
Deposits should be recorded electronically using a *DEFINE VC1 document. Note: Interdepartmental Transfers (IDTs) should not charge sales tax.
2. Segregation of Taxable and Nontaxable Sales
When depositing sales tax, taxable sales must be segregated from nontaxable sales by denoting each item on a separate line on the same *DEFINE VC1 document. The deposit should have separate totals for the following items:
- Sales not subject to sales tax (sample description: "NT book sales")
- Sales subject to sales tax (sample description: "T book sales")
- Sales tax separated by tax rate (sample description: "Tax - book sales Travis County")
3. Object Code
Permanent UT Facility Fannin 6034 McDonald Observatory Fayette 6035 Winedale Jefferson Davis 6036 Not applicable Midland 6037 Not applicable Nueces 6033 Marine Science Institute Travis 6032 Most UT Austin facilities, including Pickle Research Campus (PRC) and Applied Research Laboratories (ARL) Other 6038
Note: For university departments operating a temporary place of business in any county other than the department’s home county, the object code used on the *DEFINE VC1 document should be that of the county in which the temporary place of business is located, regardless of whether the university maintains a permanent place of business in that county.