Utah Sales Tax 2023 - 2024
Utah sales tax is levied on the sale of tangible personal property and products transferred electronically, as well as certain services. Businesses must register to collect and remit Utah sales tax.
The sales tax in Utah is 4.85 percent of the purchase price of taxable goods and services. The state also imposes excise taxes on certain industries. The state has a sales tax holiday for cars that is usually during the last week of November. If you are a business that sells products and services online, you will need to register for a sales tax permit in Utah if you have a nexus in the state. You can do this through the OneStop Business Registration service or by downloading a paper form. You will be assigned a filing frequency when you register, which will determine how often you need to file sales tax returns.
If you are a local business, you should charge sales tax based on the sales tax rate of the city and county where your customers live. You can find sales tax rates by address and zip code using an online software. In addition, you should collect sales tax on shipping charges if they are separately stated on the invoice to your customers or if they are included in the cost of the products and services that you are selling.
Am I Obliged to Collect Sales Tax in Utah?
To determine if you are obligated to collect sales tax in Utah, consider whether your business has a commercial connection with the state. This is called nexus. You may have nexus if you have an office, warehouse, distribution center, storage space, or any other physical presence in the state. You may also have nexus if you have employees or representatives in the state.
You must register for a Utah sales tax account if you have economic nexus. This includes remote sellers who make $100,000 or more in sales of taxable items or 200 or more transactions in the state. You must also remit use tax on the products you sell to Utah residents, including clothing and food.
Utah Sales Tax on Cars
When buying a new vehicle in Utah, you will undoubtedly pay sales tax. The exact amount depends on a few factors, including the type of car you purchase and your location in the state. In general, you will need to pay state sales and use tax as well as one or more local and county option taxes.
The state of Utah also collects additional fees that you may need to pay when purchasing a new vehicle. These fees are called “doc fees” and vary based on the dealership. The doc fee is in addition to the sales tax you will need to pay on your new vehicle.
To make sure that you’re collecting the correct sales tax, keep detailed records of your taxable transactions and the exemptions you qualify for. Implement a reliable bookkeeping system and use it to regularly reconcile your accounts. This will help you identify errors and ensure that your returns are accurate and complete. In addition, be aware of your filing frequency and due dates to avoid late penalties. To file a sales tax return, visit the TAP website and select the appropriate form for your reporting period.
