Sales Tax
MIT is tax-exempt in many states, so remember to declare your tax-exempt status when making an MIT purchase. If you have your Procurement Card, you can show MIT’s tax-exempt number (printed on the card) to the supplier. For other purchases, you may need to present MIT’s tax-exempt form.
Massachusetts Sales Tax Exemption
MIT is exempt from paying state sales tax on the goods and services it purchases in Massachusetts.
MIT’s sales tax-exempt status is certified by Forms ST-2, ST-5, and ST-5C.
- When purchasing goods for MIT, a supplier will typically request that you provide both Forms ST-2 Certificate of Exemption and ST-5 Sales Tax Exempt Purchaser Certificate.
- Sub-contractors purchasing goods and services on behalf of MIT may need to provide Form ST-2 and Form ST-5C Contractor’s Sales Tax Exempt Purchase Certificate.
Out-of-State Sales Tax Exemption
If you are purchasing goods or services from a supplier in another state, check MIT's exemption status by state for relevant exemption certificates or numbers.
International Purchases
If your DLCI purchases from a company outside the U.S., the transaction may be subject to Goods and Services Tax (GST) or Value Added Tax (VAT). GST and VAT are non-U.S. taxes imposed on sales of goods and services and paid by consumers. Your DLCI is responsible for any GST or VAT costs, as MIT is not exempt from these taxes.
Record Retention
When your transaction is complete, you will need to keep documentation about the transaction.
- Receipts or other proof of payment for reimbursement requests, regardless of dollar amount
- Receipts or other proof of payment for ProCard. Exception: For transactions $75 and under, submit only backup for business meeting meals. (Alcohol is not allowed on the ProCard.)
- Invoices for purchase orders or requests for payment
- Record of receipt for goods (e.g., electronic receipt in B2P)
These records are used in support of internal approval processes, internal audits, and external audits
- to verify and approve transactions
- to show that an expense was legitimate and allowable
- to provide evidence that a transaction occurred
Ultimately, these records help ensure that MIT’s money is being used responsibly and effectively.
VPF advises DLCIs that electronic financial records stored on VPF central platforms do not require additional paper backup. Once complete and legible records are uploaded and approved in Concur, B2P, eRFP, Procurement Card Inbox, or journal vouchers, they are maintained by VPF and do not need to be stored and retained by your DLCI.
If you did not upload your receipt to a VPF system, your DLCI needs to store and retain records as follows:
| Record Type | How to Store |
|---|---|
| Related to multi-year sponsored award | Retain the record for three years after the close of the award |
| Paper | File locally and retain paper records for Current FY + 4 FYs |
| Electronic | Save to a shared department drive and retain records for Current FY + 4 FYs |
Having a thorough understanding of MIT’s policy will help you follow the policy as well as associated best practices.
See Buying and Paying Policies, Section 8.00 for MIT's Financial Record Retention Policy. Highlights include:
- You’re encouraged to keep records in electronic rather than paper form
- If the original record was electronic (e.g., an electronic invoice or receipt), keep it electronic; there’s no need to print out and retain it in paper form.
- Once you upload a complete and legible financial record to a VPF-managed application (Concur, B2P, eRFP, Procurement Card Inbox, or Journal Vouchers), VPF is responsible for retaining it.
The table below provides a visual guide of the policy (also available for download in PDF format).
| Financial Records Uploaded to VPF's Financial Systems |
Financial Records Retained Locally in Electronic Format
|
Financial Records Retained in Paper Form |
|---|---|---|
|
|
|
If you need some reminders of the policy and key best practices, take a look at the Financial Record Retention quickcards and FAQs:
- FAQs: Financial Record Retention
- Quickcard: How Long to Retain Financial Records
- Quickcard: Electronic Imaging
- Quickcard: ProCard and Travel Card Receipts
- Quickcard: ProCard Inbox Attachment
- Quickcard: Packing Slips for B2P POs
- Quickcard: Recording Receipt in B2P
You may find it helpful to keep these at your desk as quick references.
Payment and Delivery
Once goods and services are received and the invoice is fully approved, then payment will be issued based on payment terms to the supplier.
Understand Audits
Just like individual consumers, institutions like MIT are at risk for fraud and financial scams from both internal and external sources. VPF routinely monitors and audits purchases throughout the community to protect our resources and mitigate risk.
Receiving an occasional email requesting more information about your purchases is a normal part of the audit process. Learn more about preventing fraud when purchasing for MIT.
Fraud
Just like individual consumers, institutions like MIT are at risk for fraud and financial scams. VPF is dedicated to protecting the Institute's resources and encourages staff to learn how to recognize fraudulent activities.
Here are a few ways to be vigilant against fraud perpetrated by outside individuals and agencies.
- Carefully verify the claims of suppliers who reach out to you unsolicited as some may be scam artists and fake companies.
- Never give out sensitive personal or business account information to someone who has called or contacted you unsolicited.
- Carefully review all purchase orders and invoices. Scammers might attempt to present invoices for goods that were not received. If you suspect this has occurred, immediately notify your department leadership and work with the B2P Contact Center at b2p@mit.edu or 617-253-7000.
- If your Procurement Card or Travel Card is lost, stolen, or has transactions you do not recognize immediately contact Bank of America at 1-888-449-2273 and follow up with an email to VPF Travel and Card Services.
- Never accept any changes to supplier banking or address information via email or phone. Changes must be made by the supplier in PayModeX or through the Coupa Coupa Supplier Portal.
- Do not send sensitive information via email or phone, such as Social Security Numbers or W-9s. This information should ONLY be sent via PayMode or through Coupa Supplier Portal.
- Do not send Procurement Card numbers, Travel Card numbers, or security codes over email.
- Ensure communications from a trusted colleague or supplier are genuine. A common scam is to impersonate (or "spoof") a colleague to ask for gift card purchases or money transfers. If in doubt, verify with your colleague.
If you suspect you are the victim of a scam or other fraudulent practices, immediately notify the B2P Contact Center at b2p@mit.edu or 617-253-7000.
To ensure that we are good stewards of MIT’s financial resources and to mitigate risk, VPF routinely conducts audits — on specific orders and on orders randomly selected for review — on purchases made with MIT funds.
Occasionally, VPF may ask you for additional information about one or more of your purchases, such as itemized receipts or a more thorough explanation of your intent for the goods or services. This is a routine and normal part of the audit process. These requests should be addressed in a timely manner.
Here are some ways you can help mitigate risk to yourself and MIT:
- Ensure that you understand how to responsibly use MIT funds, as well as what costs are allowable and appropriate.
- If you are a Financial Primary Authorizer, you are responsible for maintaining the purchasing authorizations for your area in the MIT Roles Database.
- If you accidentally misuse your Procurement Card or Travel Card, please contact VPF Travel and Card Services right away to explain and resolve the situation.
- If you suspect someone in the MIT community is committing fraud, contact your department, lab, center, or institute (DLCI) Director of Administration and Finance (DAF).
Policy
VPF Buying and Paying 3.00 Purchasing Standards
When making a purchase, first consider if the costs are allowable, allocable, reasonable, and appropriate.
Tariffs
A tariff is a tax or duty imposed by a government on imported products from one country to another. Tariffs are imposed at time of entry into the country and are typically a percentage of a product’s value. Suppliers that bring foreign goods into the U.S. pay this duty to the government, and the supplier may pass the cost of the tariff (or a portion thereof) on to MIT. If MIT purchases a product straight from a manufacturer, MIT may pay the duty to the shipping company, such as UPS, FedEx, or DHL, or MIT’s customs broker, Watchpoint. Below is an overview of resources and guidance regarding tariffs.
NOTE: As of May 2, 2025, the duty-free de minimis exemption that allows duty-free entry for low-value goods ($800 or less) will no longer apply to goods imported from the People’s Republic of China (PRC) and Hong Kong (please see Notice issued by U.S. Customs and Border Protection from April 28, 2025 for more information).
Suppliers may include the applicable tariff on their quotations or invoices. Some suppliers are providing an estimated tariff at the time of purchase; however, DLCIs should be aware that the actual tariff charged is determined based on the date of import and, therefore, the actual tariff charged may be different than the estimate at time of purchase. DLCIs should check with their suppliers often regarding anticipated delivery schedules for orders to help anticipate the actual tariff that may be applied.
Alternatively, you may see these charges on an invoice from a customs brokerage/clearance provider when MIT is directly importing goods from a manufacturer outside of the U.S. and is therefore, as importer, paying the tariff.
If a supplier indicates a tariff will apply to your order, DLCIs should request that the supplier or international shipper provide the following information on the quote to help determine, confirm, and plan for the applicable tariff. If a supplier later discloses the applicability of a tariff by providing a tariff charge on an invoice, DLCIs should still request the information below:
- Accurate item description(s);
- 10-digit HTS codes for each item;
- Proof of country of origin (such as a Bill of Lading, a Certificate of Origin, a Declaration of Origin, or a Tariff Schedule);
- Date of Entry (if tariff is provided on invoice; otherwise, DLCIs should work with the supplier to understand the anticipated shipment date and date of import); and
- Applicable Rate (if tariff is provided on invoice; otherwise, DLCIs should work with the supplier to understand the current rate and be aware that the tariff may change on the actual Date of Entry).
Due to market and trade dynamics, DLCIs may find that suppliers are increasing prices. VPF recommends that DLCIs work with their suppliers to validate and negotiate any proposed cost increases:
- Validate: When suppliers propose a tariff-related price adjustment, to verify the proposed price adjustment DLCIs should ask the supplier to submit detailed documentation to demonstrate how the supplier’s supply chain has been impacted. This may include, but not be limited to, invoices, import documents, market data, or other relevant data.
- Negotiate: Based on the data and documentation submitted, DLCIs can engage with their supplier to negotiate (i) share of the percentage increase or fixed price increase or discount change, (ii) a cap on the increase, and/or (iii) the duration for which the increase will be allowed.
DLCIs can reach out to Strategic Sourcing for assistance in engaging suppliers in these discussions.
Watchpoint is MIT’s Preferred Supplier for customs brokerage services. When importing goods, the use of Watchpoint is strongly encouraged. Watchpoint has provided a step-by-step process for Customs Brokerage.
Watchpoint is paid directly for their services, in addition to any applicable duties and taxes. DLCIs will create a B2P Requisition for the clearance services and fees and provide Watchpoint with the purchase order number to ensure prompt delivery and invoice processing. More information can be found on the Watchpoint Supplier Page in Supplier Search.
Watchpoint’s Supplier Contact Information:
Linda Amiro
617-567-6800
As tariff and U.S tax requirements continue to evolve, customs clearance delays are expected. If your shipment has been idle in U.S. customs for 10 days, we recommend you email your shipment carrier name (DHL, FedEx, etc.) and shipment tracking number to Linda Amiro (Linda.Amiro@watchpointlogistics.com) at Watchpoint Logistics (and cc Derek Welcome welcomed@mit.edu) for a customs clearance status update. Linda is available Monday through Friday (7:00 a.m.–5:00 p.m.).
Some goods may be exempt from tariffs. VPF recommends contacting Watchpoint to understand exemptions that may be available or applicable to you. This may include, but not be limited to, laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S., for which DLCIs may submit a Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form.
When you obtain the 10-digit Harmonized Tariff Schedule (HTS) code for your item(s) from the supplier, send the HTS code(s) and item description(s) to Linda Amiro (Linda.Amiro@watchpointlogistics.com) at Watchpoint Logistics (and cc Derek Welcome welcomed@mit.edu), and ask if the item(s) may be eligible for an exemption, such as the Duty-Free Entry of Scientific Equipment and Apparatus Exemption. If Watchpoint confirms eligibility, you may proceed with mailing your application to the address for U.S. Customs and Border Protection on the form. If U.S. Customs and Border Protection approves your exemption, provide a copy of the approval to Linda Amiro (Linda.Amiro@watchpointlogistics.com).
Frequently Asked Questions
Yes. All tariffs must be paid and are applied based on the date that the item(s) arrived in the U.S. This is more commonly referred to as the “entry date.”
MIT DLCIs are responsible for paying the tariffs for shipments from international locations. When/where possible, MIT strongly recommends sourcing items from vendors that can/will ship from within the U.S.
Some goods may be exempt from tariffs. VPF recommends first contacting Watchpoint to understand exemptions that may be available or applicable to you. This may include, but not be limited to, laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S., for which DLCIs may submit a Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form.
Some goods may be exempt from tariffs. VPF recommends first contacting Watchpoint to understand exemptions that may be available or applicable to you.
Laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S. may be eligible for an exemption. DLCIs may submit a Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form. As noted above, VPF recommends first contacting Watchpoint for questions regarding available exemptions. When completed, mail your application to the address for U.S. Customs and Border Protection on the form.
Contact your cost object owner(s) or DLCI Director of Finance and Administration to discuss any budgeting needs.
The Federal Government has the authority to impose tariffs, and the government is currently in several tariff discussions and negotiations worldwide.
There may be an opportunity to negotiate the impact of tariffs on your specific purchase with the supplier that is selling the product. For example, you may ask the supplier if they would be willing to absorb all/some of the tariff cost, or offer lower pricing on the items to help offset the tariff cost. There may also be an opportunity to ask the supplier to explore ways to ship the items to MIT from their U.S. location.
Yes, adding the tariff charges to a quote may help DLCIs understand costs for budgeting purposes, and provide an opportunity to negotiate item and tariff costs before the items are purchased and shipped. However, please be aware that tariffs are subject to change and are determined by actual date of entry and, therefore, you may see a different tariff charged on your final invoice (higher or lower).
Tariffs, customs, and import duties are generally allowable under federally sponsored awards, so long as the related activities take place within the U.S. DLCIs should reach out to their cost object owner(s) and/or RAS Administrator to help plan for potential tariffs in the sponsored budget.