SALES AND USE TAX
The University of California, Berkeley is subject to California sales or use tax on the purchase and sale of goods and services considered taxable by the California State Board of Equalization.
The University of California is not a sales tax exempt organization. It is subject to State-administered sales and use tax laws to the same extent as private individuals or businesses.
Effective January 1, 2017 The City of Berkeley Sales & Use Tax Rate is 9.25%
Sales and Use Tax rates comprise of State, Local (city), Local (county) and Local (District) rates.
Sales & Use Tax Rate Breakdown
|District (Range)||0.00 - 2.50|
- A California vendor has a business location in California and sells tangible personal property in the state.
- An out-of-state vendor is not located in California and does not have a physical presence in the state. ( Please note Foreign Vendors fall into this category)
- Businesses located out of the State that have a physical presence (nexus) in California are required to register with the State Board of Equalization and collect and remit sales tax
Sales tax vs. Use tax
Although the rate for California sales and use tax is the same, the way the tax is collected and handled differs.
- Sales Tax is charged by vendors on the sale of tangible personal property and taxable services.
- UC Berkeley pays sales tax directly to California Vendors and out of state vendors registered in California to collect sales tax.
- Generally, sales tax is billed on the vendors invoice and listed separately from the price of the goods or service.
- Use Tax generally applies to purchases from out of state vendors. It may also apply when vendors from other California counties do not include tax on their invoice, or do not include enough tax on their invoice.
- Use Tax is accrued on purchases of tangible personal property or taxable services that are stored, used or consumed in California.
- UC Berkeley pays use tax directly to the State Board of Equalization, rather than to the vendor. You will not see use tax listed on Invoices or Credit memos.
Generally, California sales or use tax does not apply to:
- Goods delivered outside California and used permanently in another state
- Purchases for resale
- Transactions with these governments/agencies:
- State governments/ agencies in all 50 states
- U.S. governments/ agencies
- Foreign governments/ agencies
- Purchases for non taxable goods or services
Common Exemptions (specifically, do not apply sales or use tax)
- Computer Software received electronically (no Tangible media)
- Consulting services
- Installation services
- Optional equipment maintenance agreements
- Subscriptions (published between 4 and 60 times per year)
- Room Rental fees
- Training services
- Shipping/ Freight separately stated (i.e. UPS, Fed Ex) *Note Handling is taxable*
- Repair labor
For more information on exemptions, please see Sales and Use Tax Exemptions.
Get more information on rules and regulations from the California State Board of Equalization.