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Acquisitions Department >>Payment Unit>>Procedures Index
Payments Unit
Miscellaneous Invoice Fees
rev20031003
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Auction Related Fees
-- Buyer's Premium: taxable. Use a MISC payment line linked to a "-SH" order.
-- Commission: non-taxable. Use a SERV payment line linked to a "-SH" order.
Bank Fee
Non-taxable. Use a SERV payment line linked to a "-SH" order. Because we insist on paying invoices in US dollars, we will pay any reasonable bank fee associated with converting our check into the local currency of the vendor. These charges should be a separate line item on an invoice and be labeled "bank fee" or "bank charge".
IMPORTANT: The bank fee is a charge per check in a foreign currency that is deposited/cashed. If you are paying several invoices with bank fees that you know will be paid with one check, you should only pay the bank fee on the first invoice and delete the bank fees on the others. Send the vendor a short pay notification as is usual with an explanation.
California Tax
We will pay or accrue the correct Santa Clara County tax for all taxable line items. This charge is automatically caculated every night. Both the TAX prorate line and the TAX field in the extended information of the invoice record are updated as necessary.
Customs Fees
- UPS "merchandise processing fee" is a fee for clearing customs for shipments valued over $2,000.00. It is not a transportation fee and is taxable. Use a MISC payment line linked to a "-SH" order.
- UPS "disbursement fee" is a brokerage service fee for clearing customs. It is not a transportation fee and is taxable. Use a MISC payment line linked to a "-SH" order.
Handling Fees
- Taxable. Use a MISC payment line linked to a "-SH" order if the vendor has a separately stated charge labeled "handling".
- If handling charges are combined with shipping charges, do not pay tax. Use a SHIP payment line linked to a "-SH" order.
Insurance
- Non-taxable. Use a SERV payment line linked to a "-SH" order.
- Shipping & insurance: non-taxable. Use a SHIP payment line linked to a "-SH" order.
Maintenance Fees
- Maintnance fees for internet resources for which we have received no software are non-taxable and should be paid on a SERV payment line linked to a "-SH" order.
- In general, any maintenance fee regarding hardware is non-taxable, even if a technician visits your site.
- Any optional maintenance fee on software is non-taxable as well.
- Any maintenance fee that is a requirement of purchasing software is taxable.
-- psk, 04/26/01 per phone call to BOE
Membership Fees
A membership fee that is clearly unrelated to any materials received on the membership is non-taxable. (see reg.1584)
Processing Fees
Taxable or non-taxable? Pending answer from the BOE -- psk 03-21-2000
Reproduction Fees (Video)
Various fees associated with dubbing information in one format to another follow general principles for determining taxability. If the charge is for a service, it is non-taxable. (Sometimes the quantity for these services are expressed in time units such as hours.) If the charge is for a physical object that we receive, it is taxable. (e.g. Beta tape, VHS tape, etc.)
- dub = to supply a film or tape or disk recording and taxable
- transfer MOS = charge for technicion to transfer information to another media format and non-taxable
Service Fees
Service fees for work performed by an individual or individuals (usually billed in hours) are never paid in Unicorn. If the invoice is less than $$$ then process it as a subsidiary payment and note that it is a "service invoice" so AP will process it correctly. [e.g. invoices for appraisals of a collection are service invoices] -- psk 10-03-03
Shipping Fees
- Shipping/transportation charges are non-taxable. Use a SHIP payment line linked to a "-SH" order.
- If shipping & handling charges are combined, do not pay tax. Use a SHIP payment line linked to a "-SH" order.
- If it is clear that most of a combined shipping & handling charge is for handling, use a taxable SERV payment line linked to a "-SH" order.
VAT Tax
This tax only applies to goods & services exchanged between EEC countries. Our policy is to contact a vendor who is charging us VAT and try to convince them that we are exempt before deleting the charge.
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maintenance fees
Last modified:
June 8, 2006 |
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