Foreign Purchases

  1. Certain purchases from foreign suppliers may require income tax withholding. Listed below are the categories of purchase which must be assessed for income tax withholding.  Each purchase requires the Foreign Supplier Pre-Approval Form (DocuSign). The following tax documents from the supplier must be attached to this form when submitted to Tax Reporting for approval:Services in the USA performed by individual: FNIF (PDF), Visa, Passport, Certification of Academic Activity (PDF) (if in the USA on travel or on a business visa), FTB form 587 (optional if all of the services are performed in California or if purchases from this supplier are $1,500 or less in the calendar year) and other available documents (quote, proposal, etc.).
    1. Services in the USA performed by individual: FNIF, Visa, Passport, Certification of Academic Activity (if in the USA on travel or on a business visa), FTB form 587 (PDF) (optional if all of the services are performed in California or if purchases from this supplier are $1,500 or less in the calendar year) and other available documents (quote, proposal, etc.).
    2. Services in the USA performed by company:  W-8 BEN-E (PDF), FTB form 587 (optional if all of the services are performed in California or if purchases from this supplier are $1,500 or less in the calendar year) and other available documents (quote, proposal, etc.).
    3. Royalties* payable to individual: W-8 BEN form (PDF) and FTB form 587 (optional if supplier has a business sites in California** or if purchases from this supplier are $1,500 or less in the calendar year).
    4. Royalties* payable to company: W-8 BEN-E form and FTB form 587 (optional if supplier has a business sites in California** or if purchases from this supplier are $1,500 or less in the calendar year).
    • *Royalties – A royalty is income derived from the use of an intangible property, such as patents, copyrights (rights to use scholarly articles, music scores, images of art, film, or television episodes, etc.) trade names, and trademarks.
    • ** Business sites in California is applicable when the intangible property was created in California or owned by a business in California.
  2. Tax Reporting will assess the documents submitted and determine whether tax must be withheld and, if so, how much.
  3. If tax withholding is required and a department wishes to absorb the cost of withholding, Tax Reporting should be informed, otherwise the supplier will be paid less than billed.  If a purchase is made and it is later determined that withholding should have occurred, Tax Reporting will accrue the charge and notify the department.

If you have any questions about your purchase or questions about any of the tax forms, please contact Tax Reporting by email at tax@csulb.edu

For international conferences, see REGISTRATION category.

 

Yes, if a signed document is required or if the amount is greater than $9,999.

If a requisition is required, the minimum time for generating a dispatched purchase order:

A minimum of 10 working days after Purchasing receives all completed documentation.

Campus and Foundations - All Goods & Services purchases between $50,000 - $100,000 require a minimum of 3 competitive quotes. If obtaining quotes from small or disabled veteran businesses, then only 2 quotes are required from the same classification (for example, 2 small business quotes).

Anything under $50,000 is at the discretion of the Purchasing Department as to whether additional quotes are required. Any purchase over $9,999.00 must be submitted on a requisition.

Purchases over $100,000 require a Request Formal Proposal (RFP). If obtaining quotes from small or disabled veteran businesses, then only 2 quotes are required from the same classification (for example, 2 small business quotes).

Foundation “G” (Grants) Funds - All Goods & Services purchases between $10,000 - $49,999 require at least 2 informal quotes. Anything between $50,000 - $100,000 require 3 informal quotes. Purchases over $100,000 require a Request Formal Proposal (RFP).

Review Terms and Conditions.

Obtain approvals from appropriate areas.

By accepting a contract with the CSU, Contractors must certify they are neither nor its principals or its subcontractors are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in transactions by any federal department or agency (2 Code Federal Regulations[CFR] 180.220, in accordance with the Office of Management and Budget guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235).

For contracts using both, CSU and federally awarded funds, a debarment check must be completed prior to issuing any procurement contracts of goods or services that are $25,000.00 or greater.

Is there a binding agreement that needs to be signed?

The binding agreement must be signed or agreed to by the Director of Procurement and or their designee on behalf of the campus. 

Risk Management Review Required?

Yes, if this is a service or a signed agreement is required.

  1. Permitted Payment Options: Subject to the above requirements.
    • PO – Allowed
    • Pro Card – Allowed
    • One Card – Not Allowed
    • Direct Pay – Allowed
    • Employee Reimbursement – Not Allowed
  2. Documents required:
    • Supplier Invoice
    • Additional required documents listed under the Additional Forms or Requirements section above.
    • Delegated approval (DOA) using one of the following options
      1. Purchase Order (PO)
        1. Dispatched PO & receipt of goods through Shipping & Receiving (no action required by requesting department)
        2. Authorized stamp on invoice referencing PO# and Acknowledgement of Service
        3. Electronic approval (via email) sent directly to fisinvoiceapproval@csulb.edu   
  3. Payment Notes:
    • All checks will be mailed by the Accounts Payable department
    • Invoices received by Accounts Payable, prior to payment, are routed to the requester or approver to verify receipt of service or items. Reference the Invoice Approval Process for more information.

Common GL Account(s) to Use

Varies

Refer to your Division/College/Department for additional policies and procedures.

*Royalties – A royalty is income derived from the use of an intangible property, such as patents, copyrights (rights to use scholarly articles, music scores, images of art, film or television episodes, etc.) trade names, and trademarks.

**Business sites, for California income tax purposes, means an intangible property was created in California or owned by a business in California.

If you have any questions about your purchase or questions about any of the tax forms, please contact us Tax Reporting by email at tax@csulb.edu.