Completing the Tax Information Section

The Tax Information section of a requisition must be completed when placing an order for services in BUY.IU. Information entered in this section is used by University Tax Services to calculate tax liability, adjust payments due to this liability, gross up payments per request, and report contractor earnings to some US states.

This information is required when establishing orders for services. If left incomplete, the requisition will be returned to the submitter.

Click a button below to jump to instructions for that type of order.

Domestic Supplier Orders
Foreign Supplier Orders

Orders Placed with Domestic Suppliers

Use the carets found in the top right corners of requisition sections to collapse sections to reveal the Tax Information section, or simply scroll down the page.

Click the pencil icon in the top right corner of the Tax Information section to edit.

Domestic supplier payments cannot be grossed up. Mark "No" in the Gross Up? field when working with domestic suppliers.

Complete the Services Provided (in what Country) field by typing "United States" in the field and selecting "USA - United States" when it pops up.

Complete the Location of Services Provided (State) field by typing the state name and selecting from the auto-populated list, or by clicking the magnifying glass to run a full search.

In our example, services are being performed in Indiana, so we'll enter "Indiana" in the Description field to search for the state code. Click Filter to search.

Click the plus sign next to the state to return it to the requisition.

Once all fields are complete, click Save to save your changes.

The Tax Information section is now complete.

Orders Placed with Foreign Suppliers

Use the carets found in the top right corners of requisition sections to collapse sections to reveal the Tax Information section, or simply scroll down the page. Click the pencil icon in the top right corner of the Tax Information section to edit.

Foreign supplier payments can be grossed up. Grossing up a payment results in additional charges to your department. The amount of the payment is increased to account for taxes payable by the supplier.

The table below provides of how a $1,000 payment is handled with and without grossing up the payment.

Use the online NRA Calculator to estimate the tax burden associated with the payment.

Option	Explanation	Example
No	Payment reduced by tax calculation. Supplier receives payment less than amount stated on original invoice/requisition.	$1,000 × 30% = $300 Tax Calculation $1,000 - $300 = $700 Net Supplier Payment $1,000 Charged to Department
Yes	Cost of payment to department increased by the amount of applicable tax. Supplier receives amount stated on original invoice/requisition.	$1,000 ÷ (1-30%) = $1,428.57 Gross Up Amount $1,428.57 x 30% = $428.57 Net Supplier Payment $1,000 + $428.57 = $1,428.57 Charged to Department

First, update the Gross Up? field. Click the drop-down arrow to generate a menu of options. In this case, there are two options: No and Yes. This option must match what is selected on the International Tax Coversheet and submitted to University Tax Services.

In this example, we will select "Yes" from the drop-down menu. We want the supplier to receive the amount listed on the requisition and our department will cover the additional expense.

Next, update the Location of Services Provided (Country) field. This field should reflect where services are being performed. Consider the following when completing this field:

Services performed online: Enter the country where the supplier is physically located when performing the work.
Services performed in multiple countries including the United States: List the United States in this field.
Services performed in multiple non-US countries: enter the country where most services will be performed.

Begin typing in the country's name and select from auto populated results or click the magnifying glass to run a detailed search.