Compliance Corner: Costco and Business Purchases
Before you head to the warehouse, read our latest announcement on the complexities of making business purchases at Costco.
Does the University of Colorado prohibit business purchases at Costco?
Short Answer: No, but it’s complicated. Read on to find out more.
Important to Understand
- The university allows business purchases at Costco using a personal membership.
- The university does not allow the purchase of Costco business memberships using university funds.
- The university prohibits Costco business membership agreements. If your department currently maintains a Costco business membership, please do not renew it. For more information on vendor contracting policies and procedures, please .
Why is it complicated?
Recent fieldwork by the Campus Controller’s Office at Boulder found that Costco warehouses do not issue a tax-exemption for business purchases made with a personal membership. This is Costco policy.Ìý
Â鶹Ãâ·Ñ°æÏÂÔØBoulder is a constitutionally-recognized state institution of higher education, and is exempt from Colorado state and local sales taxes on purchases made in its official governmental capacity. Generally, , and we discourage the use of vendors who do not apply appropriate tax exemptions for university purchases.
Final Word
It will be difficult for employees to make Costco purchases that comply with both university and Costco policies. Therefore, we encourage employees to use alternative vendors.