Departments should not pay state and local sales taxes to vendors. If a vendor includes these taxes on an invoice, the taxes should be deducted from the amount paid to the vendor. The amount of sales tax deducted and NDSU’s tax-exempt number should be noted on the Accounts Payable Voucher or receiving report, if paying a vendor using one of these forms.
NDSU’s state sales tax exemption number is E-5411. It is proper for a department to inform a vendor of this number if requested. A copy of the actual certificate is shown on the Accounting Office web site.
The University is exempt from sales tax only when a University check is issued directly to the vendor applying the tax. Reimbursement may be made to employees or other for sales taxes paid while incurring an expense on behalf of the University. The sales tax cannot be charged to a grant funding source.
Certain NDSU sales to customers are subject to North Dakota sales tax collection and reporting. Taxable sales by departments must be reported to the Accounting Office on a monthly basis for inclusion in the University’s sales tax report. Questions regarding NDSU’s sales tax filing and payment procedures should be directed to the Accounting Office. Questions about whether sales tax should be collected on a particular sale may be directed to the North Dakota Office of State Tax Commissioner in Bismarck. Their telephone number is 701-328-3470 and their e-mail address is email@example.com. Information may also be obtain from their web site www.nd.gov/tax.