When Do You Need To Register For Use Tax In Utah

WHICH GOODS AND SERVICES ARE TAXABLE?

Determining whether or not the products or services your visitor sells are taxable in Utah is the first footstep in sales tax compliance.

Traditional Goods or Services

Goods that are subject to sales tax in Utah include physical property, like article of furniture, dwelling house appliances, and motor vehicles.

Prescription medicine and gasoline are bothtax-exempt.

Utah charges a three%,reduced rate on the buy of groceries.

Some services in Utah are bailiwick to sales taxation. For a detailed list of taxable services view this PDF from the Utah Country Taxation Division website.

Digital Appurtenances or Services

A digital skilful or service is anything electronically delivered, such as an anthology downloaded from iTunes or a motion-picture show purchased from Amazon.

Utahrequires businesses to collect sales tax on the sale of digital appurtenances or services.

HOW TO Annals FOR UTAH SALES Revenue enhancement

If you determined that you lot demand to charge sales tax on some or all of the goods and services your business sells, your next step is to annals for a sellers permit. This allows your business to collect sales revenue enhancement on behalf of your local and country governments.

In lodge to register, you will need the following information:

The business entity type (Corporation; Express Liability Company; Sole Proprietorship; etc.)
The proposed name of your business.
Date the new business is going to starting time in Utah.
Appointment of the start payroll in Utah.
Names; addresses; phone numbers; FEIN'south and SSN's or TIN's of proprietors; partners; corporate officers; LLC members and Registered Amanuensis. Electronic signatures required.
The concern location(southward).
Cursory description of the business organisation activity.
Proper name and telephone number of person submitting the registration.
Forms of payment (Visa; MasterCard; electronic cheque).
For Foreign Business Entities (Business entities located outside of Utah): You will need to provide a Certification of Good Standing/Being from the State of Incorporation dated no earlier than ninety (90) days.

Register for a Sellers Permit online through the OneStop Business Registration section for the Utah State Tax Division

Get A SELLERS PERMIT

Fee: None

Expiration: None

Save Money with a Resale Certificate

With a resale certificate, also known as a reseller'south let, your business does non have to pay sales revenue enhancement when purchasing goods for resale.

Download the Resale Certificate through the Utah Land Tax Commission DOWNLOAD RESALE CERTIFICATE

Download Resale Certificate

Instruction: Present the certificate to the seller at the time of purchase.

COLLECTING SALES Tax

Afterward getting your seller'south permit and launching your business, you will need to make up one's mind how much sales tax you lot need to charge different customers. To avert fines and the take chances of costly audits, it'southward important for business owners to collect the correct rate of sales taxation.

When computing sales tax, you'll need to consider the following kinds of sales:

Store Sales
Shipping In-State
Out-of-State Sales

Store Sales

For traditional business owners selling goods or services on site, calculating sales tax is like shooting fish in a barrel: all sales are taxed at the charge per unit based on the location of the store.

Here'southward an example of what this scenario looks similar:

Mary owns and manages a bookstore in West Jordan, Utah. Since books are taxable in the state of Utah, Mary charges her customers a flat-rate sales tax of six.850% on all sales. This includes Utah'south state sales tax rate of iv.700%, Salt Lake County'southward sales tax charge per unit of one.350%, and Mary's local commune tax rate of 0.800%. (include county, local and city taxes simply if applicable)

In-state Sales

The state of Utah follows what is known as aorigin-based sales tax policy. This ways that long-distance sales within Utah are taxed co-ordinate to the address of the seller. This policy applies to state, county, and city sales taxes.

Consider the following example:

Steve runs his own business organisation selling electronics on eBay out of his home in Provo, Utah. A client living in Salt Lake City finds Steve'southward eBay page and purchases a $350 pair of headphones. When computing the sales tax for this purchase, Steve applies the iv.700% country revenue enhancement charge per unit for Utah, plus 0.800% for Utah Canton'due south taxation charge per unit, 1.100% for Provo'due south city revenue enhancement rate, and 0.250% for his local tax district. At a full sales tax rate of six.850%, the total cost is $373.98 ($23.98 sales tax).

Out-of-state Sales

Utah businesses only need to pay sales tax on out-of-country sales if they havenexus in other states.Nexus ways that the business concern has a physical presence in another country.

Mutual types ofnexus include:

Aphysical location, such as an office, store, or warehouse
Anemployee who works remotely or who is a traveling sales representative
Amarketing affiliate
Drop-shipping from a third party seller.
Atemporary physical location, including festival and fair booths.

FILE YOUR SALES Revenue enhancement Return

Now that y'all've registered for your Utah seller's permit and know how to accuse the correct amount of sales tax to all of your customers, y'all are all set up to file your sales revenue enhancement return. Just exist sure to go on up with all filing deadlines to avoid penalties and fines.

Recommended: Hiring a business organisation accountant can help your business concern file tax returns every bit well every bit outcome payroll and manage accounting. Schedule a consultation with a concern auditor today to relieve thousands of dollars on your taxes.

How to File

Utah requires businesses to file sales tax returns and submit sales tax payments online.

File the Utah Sales Tax Return

You will do this through the Utah Taxpayer Access Point through the Utah.gov website.

FILE ONLINE

How Oftentimes Should You lot File?

How often you lot need to file depends upon the total corporeality of sales taxation your business collects.

Annual filing: If your business organization collects less than $1,000 in sales tax per year and then your business should elect to file returns on an annual ground.
Quarterly filing: If your business collects between $1,000 and $l,000 in sales tax per year and then your business organization should elect to file returns on a quarterly footing.
Monthly filing: If your business concern collects more than than $50,000 in sales taxation per twelvemonth so your business organisation should file returns on a monthly basis.

Note: Utahrequires yous to file a sales tax return fifty-fifty if y'all have no sales tax to report.

Filing Deadlines

All Utah sales tax render deadlines fall on thelast solar day of the month, unless it is a weekend or federal holiday, in which case the deadline is moved back to the next business day.

Annual filing:January 31, 2020

Quarterly filing:

Q1 (Jan. - Mar.):Due Apr 30
Q2 (April - June):Due July 31
Q3 (July - Sept.):Due Oct 31
Q4 (Oct. - Dec.):Due January 31

Monthly filing: Thelast day of the following month, or the next business organisation twenty-four hour period, e.g.April 30 for the month of March, orMay 31 for the month of Apr.

Penalties for Tardily Filing

Utah charges alate filing penalty of 10% per month or partial month up to a maximum of 20% of the tax that is reported on the tax render.

The state assesses the unpaid tax with a compounded involvement charge per unit of 2% per year.

Source: https://howtostartanllc.com/taxes/utah-sales-tax

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