Whether Utah levies sales tax on these goods is one of the most frequent queries among investors and collectors of precious metals in the state. Unfortunately, the answer is not very clear-cut because it relies on a number of different things, including the kind of precious metal, how it is sold, and the circumstances surrounding the transaction.
It is first important to comprehend that tangible personal property is subject to Utah sales tax. There are a few exceptions and exclusions, such as those for food, medication, and specific services. Although tangible personal property like gold, silver, platinum, and palladium, they are not usually subject to sales tax.
Investment metal bullion, rounds, and coins are sold tax-free in Utah, according to the legislation. Investment metal is characterized as refined bullion made of gold, silver, platinum, or palladium that is valued for its metal content rather than its rarity, age, or collectability. Additionally, coins or rounds that are traded for their metal composition rather than their numismatic worth are excluded from the rule. Sales tax, however, is charged on the sale of precious metal jewelry, numismatic coins, and any other type of precious metal that isn’t an investment metal. A precious metals dealer must also charge sales tax on the value of the taxable items when investment metal is sold alongside taxable items like jewelry or numismatic coins.
It’s also crucial to be aware of Utah’s economic nexus regulations, which mandate that if their third-party sellers reach specific criteria, marketplace facilitators must collect and remit sales tax on their behalf. A company that offers a platform for sellers to sell their products or services to customers is known as a marketplace facilitator. A marketplace provider is required to collect sales tax on behalf of its sellers, including those who are selling precious metals, if they meet the economic connection requirements.
Your federal and state tax returns must include information about your consulting revenue if you are an independent contractor or consultant in Utah. If you work for yourself and offer services to others without expecting payment, you are regarded as an independent contractor. All of your earnings, including consulting fees, must be shown on Schedule C of your federal tax return.
You must first compute your net income as an independent contractor by deducting your company expenses from your gross income before you can calculate your taxes. Self-employment tax, which covers Social Security and Medicare taxes, is due on your net income. To figure out your self-employment tax, utilize the IRS Schedule SE.
Finally, Utah levies sales taxes on investment metal bullion, rounds, and coins in some circumstances but not in others. If businesses reach specific criteria, marketplace facilitators are also obligated to gather and submit sales tax on behalf of their third-party merchants. Independent contractors and consultants are required to disclose their consulting earnings on their tax filings and to compute their taxes using their net income and self-employment tax. It’s always advised to speak with a tax expert for personalized guidance on your case.
I regret the inconvenience, but the article “Does Utah Charge Sales Tax on Precious Metals”?” is not related to the question “How do taxes work for consultants?” so I cannot provide an answer to the latter. However, in general, taxes for consultants depend on various factors such as their business structure, income, expenses, and location. They may be subject to self-employment tax, income tax, and sales tax, among others. It’s best for consultants to consult with a tax professional or accountant to determine their specific tax obligations.
A tax known as a service tax is imposed by the government on a variety of commercial services. Transportation, consultancy, advertising, and telecommunication services are a few examples of the types of services that could be taxed. It’s crucial to remember that the particular services that are subject to service tax can change depending on the nation and its tax regulations.