A tax levied on the purchase or use of tangible personal property as well as specific services is known as sales and use tax. The use and sales taxes in Utah are managed by the Utah State Tax Commission. In Utah, there are two types of sales taxes: a state tax and a local tax. The local tax varies by county and ranges from 0.25% to 2.25%, while the state tax is 4.7%.
In Utah, tangible personal property—which includes anything that can be seen, touched, or felt—is subject to sales tax. This covers products like furniture, gadgets, apparel, and automobiles. Additionally, some services, such as telephone services, housekeeping services, landscaping services, and others, are subject to sales tax in Utah.
Yes, there is a sales tax in Utah on some services. A comprehensive list of taxable services is available on the website of the Utah State Tax Commission. It’s significant to remember that not all services are taxable and that some may be excluded from the application of sales tax. For instance, in Utah, legal and medical services are typically free from sales tax.
You may need to gather and send sales tax to the Utah State Tax Commission if you sell tangible personal property or taxable services to clients in Utah. This rule is applicable to companies with a physical presence in Utah as well as companies who do not, yet still conduct business there.
Depending on the city or municipality, Utah County has a different sales tax rate. For instance, the total sales tax rate in Provo is 6.65%, while that in Orem is 7.25%. The precise sales tax rate in your area should be confirmed with your local government.
In conclusion, companies who sell tangible personal goods or taxable services in Utah must grasp the state’s sales and use tax laws. Knowing what is subject to sales tax, whether you must collect sales tax, and the local sales tax rate are all crucial information. You may avoid fines and guarantee the success of your business by remaining knowledgeable about and adhering to the tax regulations.
Sales tax must typically be collected from customers in Utah if you are engaged in the sale of tangible personal property or taxable services. However, your company can be covered by a few exemptions and exclusions. To ascertain your precise sales tax responsibilities, you should speak with the Utah State Tax Commission or a licensed tax advisor.