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How To Register For A Utah Sales Tax License

How To Register For A Utah Sales Tax License

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How To Register For A Utah Sales Tax License

Most businesses starting in Utah selling a product or offering certain services will need to register for a sales tax license. This is commonly referred to as a seller’s permit, sales tax permit, sales tax number, or sales tax registration.

Check out the rest of this guide to determine who needs a Utah sales tax license, what products and services are taxable, how to register for a permit, and reporting requirements.

Also See: Guide to starting a business in Utah

Who needs a sales tax license in Utah?

A business must register for a sales tax license in Utah when:

  • A business has an “economic nexus” (physical presence in the state) when they have a physical location like a retail store or office or uses a warehouse or fulfillment center to store inventory.
  • Selling products and taxable services in Utah (includes occasionally selling items at craft shows, fairs, seminars, shows, etc.)
  • Hiring employees based in Utah (including sales representatives or agents).
  • An online business located in Utah is selling taxable products to Utah residents
  • A remote seller who sells over $100,000 in personal property or taxable property, or ships over 200 transactions annually to residents in Utah
  • Tangible personal property is defined as property that may be seen, weighed, measured, felt, touched, or is in any manner perceptible to the senses. It also includes prewritten software and digital and electronic goods.

Tangible personal property is defined as property that may be seen, weighed, measured, felt, touched, or is in any manner perceptible to the senses. It also includes prewritten software and digital and electronic goods.

What products and services are taxable in Utah?

Physical products

There are a few exceptions, but almost all physical products or real property are taxable when sold at retail in the state of Utah. Common examples include:

  • General merchandise like furniture, appliances, and clothing
  • Titled or registered items like vehicles

Most manufacturing equipment, certain products used in farming operations, prescriptions, and medical equipment are tax-exempt. See the full list of sales tax exemptions in Utah.

Digital Products

Digital products are taxable in Utah.

Services

Most services aren’t taxable in Utah, however, there are a few exceptions, some of which include:

  • Labor to repair, renovate, and clean tangible personal property
  • Laundry and dry-cleaning services when the labor is not performed by the buyer (i.e., coin-operated laundry)
  • Admission or user fees for events or places of amusement such as theaters, concerts, sporting events, bowling lanes, golf, ski slopes, zoos, etc.
  • Assisted cleaning or washing of tangible personal property if the cleaning or washing labor is not performed by the buyer (i.e., car detailing or cleaning service)
  • Short-term lodging

The Utah State Tax Commission has more information on taxable services in Utah.

How to register for a sales tax license in Utah

A sales tax license can be obtained by registering through the Utah Taxpayer Access Point (TAP) or the Utah OneStop Business Registration (OSBR). Alternatively, you can mail Form TC-69 to the Utah State Tax Commission 210 North 1950 West Salt Lake City, UT 84134-3310.

In addition to the sales tax license, you can also register for an unemployment insurance account with the Utah Department of Workforce Services, get certain city business licenses, and more.

Information needed to register includes:

  • Type of business entity (sole proprietorship, partnership, corporation, LLC)
  • Date the company started
  • Federal Employer Identification Number (FEIN) from the IRS, or SSN if a sole proprietorship with no employees
  • Tax year-end date
  • Business name, physical address, mailing address, website, email, and phone number
  • Doing Business As (if applicable)
  • Name, SSN address, and phone number of owners/officers/members

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business, which is then sent to the Utah State Tax Commission.

How much is sales tax in Utah?

If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Utah. In addition to the statewide sales tax, municipalities may add additional sales taxes. When shipping in-state, the sales tax is based on the purchaser’s address.

To find sales tax rates, see the sales tax rate charts from the Tax Commission.

When are Utah sales tax returns due?

New businesses estimate their sales and use tax liability when applying for a license and are assigned a filing status by the Utah State Tax Commission. The filing frequency is based on the expected sales volume and can be monthly, quarterly, or annually. Generally, a business collecting over $50,000 in sales taxes annually will file monthly.

Filings are due on the last day of the month following the reporting period unless the last day falls on a weekend or federal holiday, which would move to the next business day. Late filings can result in penalties and interest.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Utah Sales Tax License FAQs

How much does a Utah sales tax license cost?

There is no cost for a sales tax license in Utah.

How long does it take to get a sales tax license in Utah?

Most online applications for a Utah sales tax license are processed immediately. Expect 2-4 weeks to get your sales tax license number when applying by mail.

Do you have to renew a Utah sales tax license?

The sales tax license is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Utah State Tax Commission.

Is a business license the same thing as a sales tax license?

No – A business license and a sales tax permit are not the same thing. Here’s how they differ:

A business license gives you the right to operate your business in a specific area, while a sales tax permit allows you to collect sales tax from your customers on behalf of the state.
In many cases, a business will need both.

Related: What business licenses are needed in Utah

How do I get a wholesale license in Utah?

A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or supplier to the retailer, who will then charge sales tax to the end-user of the item.

Wholesalers and distributors will require a sales tax number and a completed Utah Sales & Use Tax Exemption Certificate (also referred to as a wholesale license, resale certificate, or seller’s permit) to document that the items being purchased are for resale.

If you have questions about the sales tax license, the Utah State Tax Commission has a guide to Sales and Use Tax (Publication 25), or they can be contacted by calling 801-297-2200 or 800-662-4335.

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

How To Register For A Utah Sales Tax License

How To Register For A Utah Sales Tax License

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