Sales Tax on the P-Card


GW, as a non-profit entity, is exempt from paying sales tax on certain goods and services in states where we have received a tax exemption certificate.  Currently there are 17 states in which GW holds tax exempt status.

Requirements for being tax exempt are that it must be the tax-exempt entity making the purchase, and the payment for the good or service must be made directly by that entity via P-card. Out-of-pocket purchases are not tax exempt. Each year the auditors review our purchases to see if unnecessary sales tax was paid for transactions where exemptions are held.  Payment of sales tax is seen as a waste of University funds.  

Prior to the issuance of a P-card, the cardholder must successfully pass a P-card training test that stresses the need to seek tax exemption when making a purchase. Procure-to-Pay has established a large number of contracts for schools, divisions and departments to use that are cost effective and are also tax exempt. Cardholders should use these resources as much as possible.