KFS Use Tax Accrual Correction Form

KFS Use Tax Accrual Correction Form

 

  • Effective fiscal year 2021–22, Tax Reporting and Compliance will only process Use Tax Accrual Form for adjustment amounts exceeding $100 for Sponsored program funds and  $500 for all other fund sources.1
  • Due to regulatory requirements adjustments can only be claimed within 3 years of the original purchase.

 

By using this form, you are certifying that a Use Tax was incorrectly accrued by the Kuali Financial System (KFS).  If a supplier overcharges sales tax the refund of the overcharged tax must come from the supplier. 

Examples of when this form should to be used:

Use tax adjustment can be processed when the individual adjustment is $100+ for Sponsored Programs and $500+ all other fund sources in the following circumstances:
  •  Use tax was accrued on a transaction and sales tax was paid to the vendor.
    • Procurement Card transaction Use Tax discrepancy noted on the AggieTravel reconciliation (failure to enter the sales tax on the AggieTravel reconciliation report)
    • Tax issue caused by an incorrectly entered Purchase Order (PO) or Payment Request (PREQ) (Use Tax indicator inadvertently selected)
  • Use tax accrued on an item not subject to tax, such as gift cards
Tax adjustments will be processed independent of amount:
  • ​​​​​​​Out-of-State supplier doesn't charge sales tax while purchase item is taxable,  use tax needs to be assessed
  • Partial-tax exempt situations, such as Research & Development partial exemption, can't be facilitated by vendor.    The University will accrue entire use tax due on transaction to ensure reduced rate.    This must be coordinated with the vendor. 


This form is not to be used to correct Sales Tax. If the supplier incorrectly charged Sales tax, you must contact the supplier for resolution.  Proper payment of sales tax to suppliers begins with the initiator of the Purchase Order entering accurate information on the REQS document, and Accounts Payable Invoicing, part of Supply Chain Management - Business and Financial Services, in processing the invoice. Accounts Payable Invoicing can be contacted for guidance on the best way to correct supplier charged sales tax by emailing APHelp@ucdavis.edu.    

  • 1Adjustment amount refers to the requesting credit on this request form. It is NOT the total amount made on the purchase.
Was this a taxable Item?
Must include supporting attachments.
***If "Overpaid tax (your account will be credited)" is selected above, the amount in "Amount of Tax Incorrectly Accrued" must be at least $100 for Sponsored Programs and at least $500 for all other fund sources.***
To process Use Tax reversals a copy of the vendor invoice showing Vendor Charged sales tax was or the vendor invoice showing it was a nontaxable item (e.g. gift cards ) must be attached.
Additional questions can be sent to afs-trcmail@ucdavis.edu.
One file only.
10 MB limit.
Allowed types: gif, jpg, png, pdf, doc, docx, xls, xlsx.
Please explain why the transaction qualifies for a Use Tax correction.