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 Naziat Adnan or Rebecca Berger at VPF Tax and Global Operations.
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 5 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 contact Naziat Adnan or Rebecca Berger at VPF Tax and Global Operations.
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.
What do I need to know about MIT's tax-exempt status?
MIT is exempt and should not be charged sales tax for Institute purchases made in the state of Massachusetts and many other states. The Massachusetts tax-exempt number is printed on the ProCard for easy reference. The Procurement Department maintains a file of all available state tax-exempt certificates. MIT's tax-exempt status should be mentioned prior to making any purchase. If a supplier requires a copy of MIT's exempt certificate, please view MIT Sales Tax Exemptions by State for a complete list and all exemption certificates.
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 (2018 rate is 54.5 cents per mile, 2019 rate is 58 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 Naziat Adnan or Rebecca Berger at VPF Tax and Global Operations for information on how to collect and remit sales tax.