The 10 Basics Every Utah Business Should Know About Sales Tax
What is the Sales Tax Rate in Utah?
The state general sales tax rate of Utah is 4.7%. Cities and/or municipalities of Utah are allowed to collect their own rate that can add up to 2% to the total rate.
What is Sales Tax in Utah?
Sales tax in Utah includes sales of tangible, physical property and some services.
Are All Goods and Services Taxable?
How Do I Know What’s Taxable and What’s Not?
The following links can help you determine what is taxable and what isn’t in Utah. Click here.
Who Pays Sales Tax?
Consumers pay sales tax. Merchants do not pay sales tax out of their own pockets. It’s commonly referred to as a pass through tax.
What Am I Responsible For?
You are required to collect sales tax, hold it secure and send it to the State on-time and in-full.
When Is My Sales Tax Payment Due in Utah?
Utah Sales Tax is due on the last day of the month following the reporting period. Filing frequency is determined by the state. Click here for more information.
How Do I Know How Much Sales Tax to Charge?
The Utah state sales tax rate is 4.7%. Local tax jurisdictions can add up to 2% to the total tax rate. Find more information here. The final and definitive answer is always the sales tax rate posted on the State Department of Revenue website. Rates posted on the web are often not up-to-date and incorrect. It’s always the merchant’s responsibility to charge the correct sales tax rate.
Who Gets the Sales Tax Money?
In Utah all sales tax is paid directly to the State.
How Do I Manage Tax Exempt Sales?
Tax exempt organizations such as schools and religious organizations are often exempt from sales tax. They are required to give you copy of their “TAX EXEMPT CERTIFICATE” at the time of the sale and you are required to keep this certificate on file. Failing to do so may result in you paying the sales tax out of your own pocket if you have a sales tax audit.
What if I Forget to Pay or Spend the Money and Can’t Pay?
Utah has severe penalties for missing tax payments. You can find the penalties for late payments here. If sales tax goes unpaid, states will seize the assets of the business or owner and auction them off to pay the debt. In extreme cases owners will be prosecuted and sent to jail. Even if the business closes, sales tax is a personal liability that will follow the owner until paid.
Utah Sales and Use TAX HELP: