Foreign Software Procurement Procedure

Summary

An explanation of the required steps and tax considerations for purchasing foreign software through the university.

Body

Foreign software purchases—defined as software sold by vendors outside the U.S.—require prior review by University Technology Services (UTS). Departments must submit a UTS Software/Hosted Solutions ticket, and the process includes tax review and possible 30% withholding. P-card purchases are not allowed without UTS approval.

Who is Eligible?

Active Faculty or Staff


Topic: Foreign Software Procurement Procedure
Audience: Faculty and Staff
Creation Date: March 19, 2014
Last Revision Date: June 22, 2015
Author: Teri Abbo

Per OU Administrative Policy and Procedure #1000 “Procurement”:

No software purchases can be made on a P-card without UTS prior review and approval.
Before securing software purchases, please refer to University Technology Service - Campus Software information (http://wwwp.oakland.edu/uts/faculty-and-staff-services/software/ ) and OU AP&P #870 Software Regulations and OU AP&P #1000 Procurement.

Step-by-Step Procedure

  • "Foreign Software" is defined as software provided by a vendor with a sale originating outside the United States. This requires special processing due to tax issues.

  • The requesting department submits a UTS Software/Hosted Solutions Ticket, which is reviewed by the UTS Software Manager (“USM”).

  • After USM determines that the purchase is allowable, but before advising department, USM notes if the purchase is a term license that is being paid to a foreign payee.

  • Working with the USM, the Department obtains the form "W-8BEN E" from vendor and attaches it to the ticket, unless Purchasing is already working with the vendor, in which case Purchasing will handle.
  • The USM adds the Accounts Payable Manager to the Ticket.
    • USM will include vendor contact information (phone or e-mail).
    • USM puts ticket on hold until AP Manager responds.
  • AP Manager will respond to the ticket within 48 hours advising whether or not 30% withholding will be required with this purchase.

  • Resolution will include notification to Purchasing or department as to how to allocate the costs.
  • USM resolves Ticket.
  • Department or Purchasing work with vendor for final quote.
  • Purchasing to involve AP Manager should the vendor dispute the withholding.

Details

Details

Article ID: 105
Created
Fri 3/28/25 2:38 PM
Modified
Fri 4/18/25 1:40 PM