Sales tax

(Redirected from Tax)

In many places in the United States and Canada, the Church is exempt from paying sales tax. In some locations, units pay sales taxes and then are reimbursed; in others, units are not required to pay those taxes because they document their exemption.

Reimbursement for sales tax paid

The Church receives tax credits (reimbursements) for:

  • Sales tax paid by units in Utah and North Carolina
  • Goods and Services Tax (GST) paid by all units in Canada.
  • Provincial Sales Tax (PST) paid by Canadian units in the following provinces:
    • New Brunswick
    • Newfoundland
    • Nova Scotia
    • Quebec

For those units that are required to record sales tax with each disbursement, this will no longer be recorded in a Tax field on the Expense screen. Instead, the amount of the expense will be split between the expense and the tax on the expense. Both will be entered under the "Category" and "Amount" columns. The Tax category will be the first one displayed on the screen. For units in Utah and North Carolina, the entire amount of the tax will be left in the unit's account. Only the amount of the expense will be deducted from the account. For units in Canada, half of the amount of the tax will be left in the unit's account. The other half of the tax amount plus the expense will be deducted from the account.

Units outside these areas are not required to record taxes paid. For these units there is no Tax category on the Expense screen.

Exemption from paying sales tax

In locations that charge a sales tax, but where the Church is exempt from paying those taxes, units need to document their tax-exempt status so that vendors and service providers will not charge sales tax on goods and services. Procedures vary from state to state. In some states, units may be asked for an Employer Identification Number (EIN). To obtain the necessary tax exempt information, units should contact the administrative office and ask for the Tax Administration Department, which will provide the tax exempt number for the stake.

Tax-exempt status

In many places the Church is exempt from paying sales tax, goods and services tax, or property tax. Wards should not do anything to endanger the Church's tax-exempt status. Such actions could have repercussions far beyond the stake borders. Wards must not:

  1. Rent out meetinghouses or parking lots.
  2. Rent out meetinghouses for events such as wedding receptions and reunions. Members may use meetinghouses at no cost for these kinds of events.
  3. Use Church property for the sale of commercial items or for any commercial purpose.
  4. Conduct unauthorized fund-raising activities on Church property.
  5. Advertise social events to the general public and charge admission.
  6. Have a mandatory charge to any social activity.

Determining tax amount entered in MLS

  • Units in Utah and North Carolina will enter all sales tax paid by the unit on any expense. [1]
  • Units in Canada will enter all goods and services tax (GST) on any expense. [2] Units in Quebec will also add all provincial sales tax (PST).
  • If the amount of sales tax is not listed on the receipt, you can calculate the tax. For example, if the purchase price was $100 including tax and the tax is 6.6 percent, then 100/1.066=93.81 is the amount before taxes. Subtract this from $100 to get the tax amount (100-93.81=6.19).


  1. Official Communication Letter: Sales Tax Refund [1999]
  2. Official Communication Letter: Goods and Services Tax Refund [1999]
This page was last modified on 25 May 2012, at 16:44.

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