Updates to the sales tax policy requirements for e-Reimbursement
Expense Reimbursement Tax Tolerance Guidance: Similar to Purchasing Card Procedure, the Division of Business Services has authorized a “Tax Tolerance Level” for the review and approval of expense reports. Effective December 1, 2022, if an e-Reimbursement Approver/Auditor notes an expense line with sales and use tax paid in error, the following guidance should be used:
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- $25 or less: If the amount of sales tax paid in error is $25 or less, the Approver/Auditor may note the non-compliant amount, but approve the amount for reimbursement, citing the following Immateriality Clause: “Sales tax paid in error for this transaction does not meet the materiality threshold of $25 for the University of Wisconsin–Madison; as such, immaterial sales tax will be reimbursed.”
- Greater than $25:
- Includes a documented attempt to obtain exemption: If the amount of sales tax paid in error is greater than $25 and the claimant has documented an attempt to either obtain exemption or obtain a refund (without success), the Approver/Auditor may approve the amount for reimbursement.
- Does not include a documented attempt to obtain exemption: If the amount of sales tax paid in error is greater than $25, but the claimant did not document an attempt to either obtain exemption or obtain a refund, the Approver/Auditor must reduce the reimbursable amount to the pre-tax total.