How do I apply for tax treaty coverage?
Please reference the Manage Foreign National Tax Status guidelines on this website.
What activities at MIT are subject to tax?
In a nutshell, MIT has three main tax areas: sales tax, meals and alcohol tax, and unrelated business income tax. Under each category many activities are exempt. In order to determine whether or not your DLC has taxable activity, please contact Jeremy Raphael or Rebecca Menin at VPF Tax.
My department sells merchandise (mugs, t-shirts, reprints). Do we need to collect sales tax?
It depends on the nature of the item. Massachusetts sales tax is 6.25% percent of the sales price of the item. However, many items are exempt from sales tax. For details, see Massachusetts Department of Revenue – A Guide to Sales & Use Tax. If you believe that your DLC owes sales tax on items that it sells, contact Jeremy Raphael or Rebecca Menin at VPF Tax.
Does MIT reimburse for sales tax?
Generally, no. Be sure to bring MIT's sales tax form to the vendor if purchase must be made with your own credit card or cash.
Are moving expenses taxable?
The following expenses are taxable:
- The cost of meals incurred while traveling to the new employment site
- Pre-move house hunting expenses (travel, lodging, and meals)
- Post-move temporary quarters (lodging and meals)
- Real estate expenses
- Mileage in excess of the prevailing IRS rate. The 2020 rate is 57.5 cents per mile, and the 2021 rate is 56 cents per mile
- Storage costs
Do I have to charge sales tax if I am selling goods?
It depends. Some items are tax-exempt in Massachusetts. However, these same items may be taxable in another state. If your DLC is considering selling goods contact Jeremy Raphael or Rebecca Menin at VPF Tax for information on how to collect and remit sales tax.