Sales and Use Tax on Procurement Card

Be sure to remind the vendor of the university’s tax exempt status when making a purchase. The University’s tax exemption ID number is printed on the front of the Procurement Card.

Missouri State University is exempt from paying Missouri sales or use tax pursuant to Section 144.030.2(20), RSMo.

The cardholder is responsible for ensuring sales and use tax is not included in each charge. If sales and use tax is included, then the cardholder must work with the vendor to correct the purchase amount. If sales tax is charged, the cardholder must supply written justification explaining why the charging of sales tax was approved by the cardholder at the time of the purchase. Any sales tax charged in error must be entered in the transaction log as a separate log entry. When the sales tax is corrected, a negative entry should be recorded in the log showing that the sales tax adjustment has been corrected. The cardholder will be required to reimburse the University for any such sales tax charged that is not reimbursed by the vendor.

In some cases, our tax exempt status cannot be accommodated for orders placed over the Internet. In those instances, the company must be contacted by telephone to determine the appropriate method for handling the purchase to ensure that sales tax is not charged.