If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Utah, the first step is visiting the state tax commission website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Utah?
Sales of tangible personal property in Utah are taxable. Labor to repair, renovate or clean tangible personal property is also taxable. Items that are exempt from sales tax include prescription drugs, medical equipment, and gasoline.
Utah Sales Tax Rate
The sales tax rate in Utah is 4.7%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Utah Sales Tax
In Utah, you can acquire a seller’s permit by following the state tax commission’s detailed instructions for registration:
- Fill out the application for a tax account on the Utah taxpayer access point.
- There is no fee to apply for a tax account.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Utah, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.