It is crucial for Utah business owners to understand how to obtain a sales tax exemption certificate, which enables them to make purchases free of sales tax. You must operate a business that is exempt from paying sales tax, such as a nonprofit organization or a government agency, in order to be eligible for this exemption. This article will walk you through the process of acquiring a sales tax exemption certificate in Utah.
Make sure you are qualified for a sales tax exemption certificate before you start the application procedure. Utah has a variety of exemptions, including those for government agencies, religious institutions, and charity groups. A complete list of qualified organizations is available on the Utah State Tax Commission website.
Step 2: Complete the TC-721 Form The Utah Sales Tax Exemption Certificate (TC-721 form) must be completed as the next step. This form can be printed out and mailed in or completed online at the Utah State Tax Commission website. You must include information on the goods you plan to buy together with your business name, address, and Taxpayer Identification Number (TIN).
Step 3: Fill up and submit the form The Utah State Tax Commission will accept the TC-721 form once it has been completed. You can electronically submit the form if you filled it out online. You can mail the form to the Utah State Tax Commission at the address provided on the form if you have printed it.
Although certificates for exempting from Utah’s sales tax do not expire, it is crucial to keep your certificate current. You must notify the Utah State Tax Commission of any name or address changes for your company in order to update your certificate. Additionally, you must discontinue using your certificate and notify the tax commission if you are no longer qualified for a sales tax exemption.
How should I complete a TC-721?
You must include information about the things you plan to purchase along with your business name, address, and Taxpayer Identification Number (TIN) on a TC-721. The form can be completed online or printed out and sent.
The Utah Withholding Tax Return is found on Form TC40W. Employers submit and pay withholding tax to the Utah State Tax Commission using this form. Do certificates for Utah’s sales tax exemptions expire?
The certificates for Utah’s sales tax exemption do not expire. However, if your company changes its name or address, it is crucial to keep your certificate current. How can I obtain a resale certificate? You must submit an application for a sales tax license with the Utah State Tax Commission in order to obtain a resale certificate. As long as you intend to sell the products you acquire using your license, you can do so without paying sales tax.
You might not be required to charge sales tax on certain purchases made in Utah if you have a valid Utah Sales Tax Exemption Certificate. However, you might need to collect and send sales tax to the state of Utah if you don’t have a valid exemption certificate for a certain purchase. To ensure compliance, it’s crucial to become familiar with Utah’s sales tax laws and rules.