What MIT’s tax exemption status means for you
MIT is a tax exempt institution, which means that:
- MIT is exempt from paying state sales tax on the goods and services it purchases in Massachusetts and in 29 other U.S. states.
- If you are making a purchase from any of the states listed on the MIT Sales Tax Exemptions by State page on the VPF website, you can provide the supplier with a MIT’s tax-exempt number or a copy of MIT’s sales tax exemption certificate for that state to document MIT’s exemption.
- MIT’s sales tax exemption may only be used for Institute business and may not be used for personal purchases.
How to apply for tax exemption for procard transactions for vendors in Massachusetts
You may be asked to pursue refunds for taxes charged to p-card purchases for all purchases over $75, so long as the purchase was made in a state not exempt from sales tax.
MIT’s Massachusetts Tax-Exempt Number is printed on the front of your procurement card. You can give this number to a supplier when making a purchase on your card from a local supplier.
However, sometimes vendors request a tax exemption form to be completed instead. MIT provides a copy of this form, which card holders should complete and provide for a vendor to make sure that tax is not charged on the transaction.
Within the PDF are notes that detail how the form should be completed.
How taxes are handled in RFPs
If you make a purchase for MIT using your own funds, you should provide MIT’s tax ID number or tax-exempt form before completing the purchase to avoid being charged sales tax. If you do end up paying sales tax, note that you must remove the sales tax from your reimbursement request, as MIT will not reimburse the sales tax. Once charged tax for the purchase, the seller (restaurant, bookstore) is unlikely to remove the tax after the sale is made.
While you will not be refunded for tax in RFPs, you may be for transactions which are business meals in which non-affiliated MIT participants are present. This is the only exception.
Taxes and travel
Hotels in Massachusetts and many other states charge an occupancy tax. This is not the same as sales tax, so you will not be exempt from paying it. This expense will be reimbursed in travel expense reports.
MIT forms ST-2 and ST-5 proving tax exemption status
When purchasing goods for MIT, a supplier will typically request that you provide both Forms ST-2 Certificate of Exemption and ST-5 Sales Tax-Exempt Purchaser Certificate, which you can find below:
VPF has additional information on tax forms and guidance on their website.