Selling Goods and Services
Schools and departments authorized by the Controller's Office to engage in business activity involving sales of goods and services must deposit funds timely (See University Deposits). In addition to meeting processing guidelines, merchants have two major considerations. First, the tax implications of the business activity, and secondly, the services available to merchants to support their business.
As a not-for-profit educational institution, Pepperdine University is exempt from income tax for activities that are substantially related to its educational and research missions. However, if Pepperdine were to carry out a trade or business activity that is not substantially related to its exempt purposes, generating what is called Unrelated Business Income, it would be subject to tax on the net income generated.
California State Sales Tax
Sales made by the University may be subject to California state sales tax.
Departments are responsible for being aware that the sale of certain goods and services may be subject to sales tax. Tax liability costs will be expensed to the department conducting the business activity. The Controller's Office is responsible for remitting any sales tax due (See Sales Tax Guidelines) to the State.
For departments at Pepperdine University that offer goods and services for sale there are variety of support services available.
Pepperdine eCommerce is a suite of services managed by the Controller's Office that enables Pepperdine schools and departments to establish themselves as merchants to sell goods and services on the web and to accept credit card payments. (See eCommerce Services).
Credit and Accounts Receivable manages Pepperdine's relationship with our merchant bank and is responsible for issuance of all Pepperdine merchant accounts (See Merchant Services).
A variety of deposit services are available to departments. (See University Deposits).