Utah is one of the states that demands a resale certificate in order to exempt purchases from paying sales tax. In essence, a resale certificate is a piece of paper that enables shops to buy products from wholesalers without having to pay sales tax on those goods. This certificate is crucial for wholesalers as well as retailers that wish to confirm that their clients are real companies.
A seller’s permit is required if you want to start a business in Utah that involves selling products. With the help of this permit, you’ll be able to sell products in Utah legally and apply for a resale certificate. You must fill out the required paperwork on the Utah State Tax Commission’s website in order to submit an application for a seller’s permit.
Once you receive your seller’s permit, you can submit Form TC-721 to request a resale certificate. You may fill out this form on the Utah State Tax Commission’s website and it asks for details like your company’s name, address, and tax ID number. You must also give details regarding the products you intend to buy and resell.
Use the online verification tool provided by the Utah State Tax Commission to confirm a resale certificate. You can enter the certificate number and check its validity using this system. Before accepting resale certificates from clients, it’s critical to confirm their legitimacy and make sure they won’t get you into trouble with the Utah State Tax Commission.
In conclusion, you must acquire a seller’s permission and a resale certificate if you intend to sell items in the state of Utah. You must fill out the relevant forms on the Utah State Tax Commission’s website in order to acquire these papers. Resale certificates should also be checked to make sure they are valid and won’t cause any problems with the Utah State Tax Commission utilizing the online verification method.
Utah does accept out-of-state resale certificates, but only if the seller complies with specific requirements, according to the article “Understanding Utah’s Resale Certificate: What You Need to Know”. The vendor must have a physical presence in Utah and be registered to collect and remit sales tax there. A valid out-of-state resale certificate with all necessary details must also be given to the seller by the buyer.
In general, you won’t have to pay sales tax on the things you buy for resale if you’re reselling them in Utah and have a valid resale certificate. However, when you sell the goods to your consumers, you must also collect sales tax from them. To ensure compliance with the law, it’s critical to comprehend the guidelines concerning Utah’s sales tax and resale certificates.