The University of Washington must pay sales tax on most merchandise purchased for operations of the University.

This page will discuss the difference between Washington State Sales Tax and Use Tax and how to begin the process of requesting a correction for tax charges.

Connect directly to the UW Tax Office website or view the Taxability and Suggested Object Codes grid

Sales tax: applies to tangible personal property for those vendors subject to collect Washington State sales tax. As an example, if you purchase a chair from a local supplier or an out-of-state supplier who collect Washington State sales tax, you will be expected to pay the current tax rate. The out-of-state supplier will bill you the rate applicable at the point of delivery. A local supplier will bill the rate associated with the location of the delivery of the good purchased.

Use tax: application generally will effect transactions for out-of-state supplier transactions. As an example when a chair is purchased from a vendor with no obligation to collect Washington State tax, the invoice will be for the selling price and shipping charge. The PAS system will automatically charge use tax if sales tax is not charged.

Tax Exempt: If the item being purchased is deemed tax exempt, and the purchase is made with an out-of-state vendor, use tax should not be charged. The department placing the order must coordinate with the Buyer in the UW Purchasing Department to make sure the purchase order is coded tax exempt in PAS. If this is not done, the system will default to use tax automatically, resulting in overcharging the department budget.


Correcting Use Tax Charges:

To submit a use tax correction, visit the Use Tax Correction Report in PDR. Instructions on how to submit a correction using this application can be found here. A history of the corrections submitted for processing can be found on the Use Tax History Report under the Accounts Payable or ProCard folder in PDR.

Budgets should be reviewed regularly and departments should submit correction requests immediately upon discovery of an error.

Contact Procurement Customer Service at (206) 543-4500 or with any questions on this report.


How long does it take before the correction posts to my budget?
Central Office will review and process submissions within 10 business days. Once the Central Office has approved a request, it could take up to 2 additional business days for the correction to post to the budget.
On what types of payments can I request corrections using this application?
Corrections can be made on any transaction processed through eProcurement (any module), PAS purchase order, or ProCard.
NOTE: on ProCard transactions, departments are required to attach a copy the invoice within the web form. Most standard file formats will be accepted.
How frequently should I reconcile my budget?
When possible, budgets should be reconciled monthly so that errors can be identified and corrected timely. See the Financial Accounting website for more information.
Where can I view the source documents for a correction request that has been processed?
Go to the Use Tax History Report under the Accounts Payable or ProCard folder in PDR (Procurement Desktop Reports). Select the parameters and run the report. From here, you will see the transaction details and if available, a link to the image of the payment document. Alternatively, you can search for the source documents by entering the JV number found in MyFD (starting with "F") in the Use Tax Source Docs by JV Report. In the future, you will be able to link out to the source documents directly from MyFD by clicking on the JV number.
Is there a dollar limit to the amount of use tax that can be corrected?
No, there is no dollar limit.
What if we made a payment using shared budgets?
Departments will only be able to view transactions on their own budgets/organization codes. If a payment was split between multiple budgets, one or more not belonging to your department, you will only be able to view and request a correction on the amount charged to your budget. It would be up to the other department to submit a correction request on the amount charged to their budget.
What do the different status codes mean?
Submitted: the request has been submitted for review by the Central Office.
Approved: the request has been reviewed and approved by the Central Office.
Rejected: the request has been reviewed and rejected by the Central Office. You may be able to resubmit the request upon completion of any adjustments required by Central Office.
Batched: the correction has been submitted for processing by the Central Office.
Is there a preferred internet browser for this application?
Internet explorer works best with this application, IE8 or higher with "compatability mode" turned off. Firefox and Chrome will also work.