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 $500.1
  • 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:

Tax adjustment must be over $500 in order to be processed:
  • General correction of Use Tax accruals for adjustment amounts exceeding $500
  • Procurement Card transaction Use Tax discrepancy on the Procurement Card document (failure to enter the sales tax on the PCDO)
  • Tax issue caused by an incorrectly entered Purchase Order (PO) or Payment Request (PREQ) (Use Tax indicator inadvertently selected)
Tax adjustments will be process independent of amount:
  • ​​​​​​​​​​​​​​Out-of-State supplier doesn't charge sales tax while purchase item is taxable, and used tax needs to be assessed
  • Partial-tax exempt situations, such as purchases for agricultural items with proper Ag tax exemptions
  • Requesting Research & Development (R&D) Equipment Use Tax Correction 


This form is not to be used to correct Sales Tax issues. 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 invoiceAccounts 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?
***If "Overpaid tax (your account will be credited)" is selected above, the amount in "Amount of Tax Incorrectly Accrued" must be $500 or more.***
Please explain why the transaction qualifies for a Use Tax correction.