The majority of retail sales, leases, and rents of items as well as some services are subject to sales tax in Utah. Anyone engaging in these activities is required to register with the Utah State Tax Commission for a sales tax license. You are permitted to gather and send sales tax to the state using this license. This article will walk you through the process of getting a Utah sales tax license. Who in Utah Needs a Sales Tax License?
You need a sales tax license if you run a business in Utah and offer taxable products or services. Both companies with a physical presence in Utah and those who conduct business there online are covered by this. It is significant to remember that you need a sales tax license even if you only rarely offer goods or services.
You need to get a Utah tax ID number before you can submit an application for a sales tax license in Utah. The Utah State Tax Commission issues this number, which is used to identify your firm for tax purposes. The Utah State Tax Commission website offers an online application form for a tax identification number. It costs nothing and takes no more than ten minutes to submit an application. How Much Sales Tax Is There in Utah?
The location of the sale determines the Utah sales tax rate. Currently, the state’s sales tax is 4.85%, but local sales taxes can raise the overall tax rate to 9.05%. Use the Utah State Tax Commission’s online sales tax rate lookup tool to get the precise sales tax rate for your area.
If you employ people in Utah, you must open a Utah withholding account and deduct state income tax from their paychecks. On the website of the Utah State Tax Commission, you can sign up for a withholding account. You might also need to register with the Utah Department of Workforce Services for workers’ compensation and unemployment insurance.
In conclusion, obtaining a Utah sales tax license is a simple procedure that starts with obtaining a Utah tax ID number. Once you have your tax identification number, you can use the Utah State Tax Commission website to submit an online application for a sales tax license. If you sell taxable goods or services in Utah, you should apply for a sales tax license right away because failing to do so could result in penalties and fines. You must also register for a Utah withholding account and adhere to other state payroll regulations if you have employees in Utah.
Yes, regardless of whether you sell locally or online, you must normally obtain a Utah sales tax license if you sell tangible personal property or taxable services in Utah.