You might be wondering if you have to collect sales tax if you run a business or sell things in Utah. In most circumstances, the short response is yes. The sale of some services and tangible personal property within the state of Utah is subject to a state sales tax. You should be aware that there are a few intricacies and exceptions to this rule.
In general, you must gather and submit the state sales tax when you sell products or services in Utah. As of 2021, the state sales tax rate in Utah is 4.85%. However, depending on your location, some municipal governments could additionally levy their own sales tax. For instance, the current Utah County sales tax rate is 6.75%. It is crucial to confirm the appropriate sales tax rate for your region with your local government.
There are also various exceptions and unique regulations to take into account when it comes to particular goods or services. Food and prescription medications, for instance, are often excluded from sales tax in Utah. Candy, drink, and other fast food goods, however, are taxed. Additionally, some services, including specific construction and maintenance services, might also be subject to sales tax.
Office 365 is typically regarded as a taxable service in Utah. There are a few exceptions, though. Sales tax on Office 365 subscriptions may not apply to non-profit organizations or governmental bodies. Additionally, you might not be obliged to pay Utah sales tax if you buy Office 365 through a reseller who is based elsewhere.
Last but not least, it is important to remember that Utah has a lower sales tax than some other states. In actuality, Utah’s state sales tax rate is the 29th highest in the nation. With a combined state and local rate of 10.45%, Louisiana presently has the highest sales tax rate.
In conclusion, you will probably need to gather and send sales tax to the state if you are selling goods or services in Utah. The sales tax rate can vary depending on your area, and there are a few exclusions and particular laws to be aware of. Keep abreast of the most recent changes to sales tax laws, and if you have any questions or concerns, speak with a tax expert.