Are Services Taxed in Utah?

Are services taxed in Utah?
Taxable services performed in Utah are subject to Utah sales and use tax even if the service is performed on goods later shipped to another state.
Read more on tax.utah.gov

The bulk of services in Utah are exempt from sales tax. Services are not regarded as tangible goods, despite the fact that the state of Utah levies a 4.85% tax on the acquisition of tangible personal property. This implies that you won’t have to pay sales tax on the labor of a plumber or landscaper if you hire them to execute a service.

However, some services in Utah are chargeable with sales tax. You would have to pay sales tax if you hired a personal trainer or a hairstylist, for instance. Similar to hiring an accountant or lawyer, you must pay sales tax for those professionals’ services. Remember that not all services in Utah are subject to sales tax, so it’s crucial to verify with the Utah State Tax Commission to find out which services are taxable.

If handyman services are regarded as maintenance or repair services for real property, they are exempt from sales tax in Utah. This means that the service will not be liable to sales tax if a handyman is hired to fix a leaky faucet or repair a fence. However, there will be sales tax applied to the service if the handyman is engaged to install a new faucet or build a new fence.

It is significant to remember that sales tax differs from income tax. Service providers are still obligated to pay income tax on their earnings and declare their income to the Internal Revenue Service. Only the customer paying for the service is subject to sales tax.

In conclusion, there are a few exceptions to Utah’s general rule that most services are exempt from sales tax. It is crucial to confirm whether services are taxable with the Utah State Tax Commission. Depending on the exact service being rendered, sales tax may or may not apply to handyman services. On their earnings, service providers must still pay income tax.

FAQ
Keeping this in consideration, are marketing services taxable in utah?

In Utah, marketing services are typically taxable. Unless specifically exempted by law, most services in Utah, including marketing services, are subject to a sales tax. However, depending on a number of variables, including the type of services rendered, the provider’s location, and the specifics of the transaction, the taxability of marketing services in Utah may change. For particular advice on taxability, it is always best to speak with a tax expert or the Utah State Tax Commission.