MOR Category Descriptions
Internal Use/Promotional Giveaway :
These are promotional giveaways or items purchased for internal university or medical center use. These orders are tax exempt and the tax exempt certificate is used by the licensed vendor. These products may be used internally by your department or organization or given away as a promotional item (e.g., polos or uniforms given to employees and pens given away at a conference)
Orders that are being purchased for a fundraising event/campaign where the items being purchased will be given to a donor in exchange for a donation of any amount. The item(s) must be distributed for a “suggested donation” and must be provided even if the recipient pays much less than what was suggested. These orders are tax exempt. Please note: ALL student organizations must use this option when selling items at events. This is the preferred often for all departments when an item is being sold.
Purchase for Resale:
This option is not recommended. These are orders that are being purchased for resale for a specific marked-up price. VU expects these transactions to be infrequent and isolated. The resale certificate should be used by the licensed vendor and the department will need to charge, collect and remit sales tax on the end cost of the item that is sold to the end user. The licensed vendor will include the university's royalty rate in the cost of the item. Please note: Business/Administrative Officer responsible for sales tax reporting.
Distribution to VU/VUMC Personnel for Reimbursement of the Cost of the Item:
Orders being purchased for use by Vanderbilt personnel (Faculty, staff, students, guests of the university, etc.) and will be transferred to those personnel by Vanderbilt for a specified price where the specified price is no greater than the cost of the item purchased, (e.g., lab coats, staff polos or uniforms “sold at cost” to Vanderbilt personnel), the vendor should include sales tax in the order. The licensed vendor will include the university's royalty rate in the cost of the item.
Payment with non- VU /VUMC funds:
When a third party is paying e.g., an individual paying with their personal credit card or other third party payee arrangement, regardless of the intended use of the product, the third party cannot use VU/VUMC's sales tax exemption or resale certificate and sales tax should be collected in accordance with Tennessee state sales tax statues. The licensed vendor will include the University's royalty rate in the cost of the item. Exception: Items purchased for work use e.g., uniforms, apparel, lanyards, name badges at VU/VUMC will NOT include royalties, but sales tax will still apply.