Any business that sells goods or taxable services within the state of Utah to customers located in Utah is required to collect sales tax from that buyer.
Do you need to get a Sales Tax certificate in Utah State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Utah State
- Your business sells tangible goods and products to an end user
What constitutes taxable services in Utah State?
The majority of service businesses are taxable in Utah. The exceptions would be if your business offers laundry or dry-cleaning services, medical services, and janitorial services
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Utah?
As a wholesale company conducting business in the state of Utah, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable (on taxable items ) if you include it in the purchase price of the item being sold. If you state the shipping and handling charges separately on the invoice then it is not taxable, as well as charges the purchaser pays themselves
Is there sales tax on drop shipments in the state of Utah?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Utah are required to have sales tax added
Are there any exemptions to taxable items sold?
Sales tax exemptions would be pollution control equipment and raw materials used in manufacturing and machinery, medical devices, and custom downloadable software
Register for an Utah sales/use tax number
Utah state, county, city, & municipal tax rate table