Purchase Guidelines

Texas Sales Tax

Do not pay Texas sales tax! The Texas A&M University System is always exempt from Texas state sales tax and can be exempt from federal taxes and other state taxes. We are exempt from paying Texas state sales tax. State employees should provide the Texas Sales and Use Tax Exemption Certificate form to the vendor when making a purchase.

Options for Sales Tax Charged

  • Contact vendor to obtain credit.  Initial expense and credit should be on the same account and expense code.  If the expense is in one month (expense report) and credit is in a following month, then the initial sales tax expense should be charged to a gift account while awaiting the credit from the vendor. 
  • Allocate gift account and use the same expense type/object code as the items purchased.
  • If vendor refused sales tax exemption, then allocate to sales tax payable account (GL account) and select expense type of Sales Tax Charged in Error (Travel) or 2110-Sales Tax Payable (Payment Card).  If either of these two expense types are selected, the funding account must be the GL account for sales tax payable.
  • Itemize the expense and mark the sales tax portion as an “Unallowed” expense in Concur.  When creating the itemization in Concur for the sales tax, use the same account and expense type as items purchased.  Marking this unallowed will notify the back office that this portion is to be collected from the employee.  An accounts receivable is set up and invoice distributed to the employee for payment of the unallowed expense as an accounts receivable. 
    • Due to the cost of creating an accounts receivable and collection efforts it is recommended that any amount less than $5 be allocated to a gift account if the department has a gift account.  If no gift account continue with the unallowed process. 
  • AggieBuy invoice charging sales tax should be reduced to remove the sales tax.  Remember to contact the vendor to be sure the vendor issues an internal credit so we are not sent a past due invoice for the sales tax portion of the invoice. 
  • AggieBuy employee reimbursement requests containing sales tax should either be excluded from the request or charged to a gift account.