Sales & Use Tax

Print Friendly, PDF & Email

General Information

Use the menu at right for complete information about Utah sales and use taxes. The following list has additional information.

E-Services: For security reasons, our e-services (TAP, OSBR, etc.) are not available in most countries outside the United States. Please contact us at 801-297-2200 or taxmaster@utah.gov for more information.

Frequently Asked Questions about Utah Sales and Use Taxes

How do I get a sales tax number?

You have several options for obtaining a sales & use tax number.

  • Taxpayer Access Point – TAP
    • tap.utah.gov
    • Choose “Apply for a Tax Account (TC-69)”. This option is only for taxes administered by the Tax Commission
  • OneStop Business Registration – OSBR
    • osbr.utah.gov
    • With this option, you can register for a Tax Commission account; register your business with the Department of Commerce; set up an unemployment insurance account with the Department of Workforce Services; get certain city business licenses, and more.
  • Paper form TC-69, Utah State Business and Tax Registration
    • This form can be mailed or you can take it to one of our offices.
    • This option is only for the tax types listed on TC-69 and administered by the Tax Commission
    • Submit the appropriate schedule for the tax type you are applying for
    • Schedule types are listed next to the tax license you are applying for

You will receive your tax license information by postal mail, after which you can go to Taxpayer Access Point tap.utah.gov and create a TAP login to file and pay your taxes online.

If you or other listed owners, partners, officers, members or trustees have a history of filing or paying sales tax late, you must pay the outstanding liabilities and may be required to post a surety bond before receiving a new sales tax license.

What is nexus?

Nexus means a business has an established presence in Utah. Retailers and marketplace facilitators must collect and pay sales and use tax on their sales and on sales they facilitate on their marketplace if they sell tangible personal property, products transferred electronically, or services for storage, use or consumption in the state; in either the previous calendar year or the current calendar year, that result in either:

  • Gross revenue of more than $100,000; or
  • 200 or more separate transaction.

See Publication 37, Business Activity and Nexus in Utah.

When are my returns and payments due?

Due dates for sales tax are based on the previous year’s tax liability, as follows:

Annual Tax Liability Filing Status Due
$1,000 or less Annual filer January 31
$1,001 to $50,000 Quarterly filer April 30, July 31, October 31, January 31
$50,001 to $96,000 Monthly filer Last day of month following end of period.
$96,001 or more Monthly filer with mandatory EFT payments

Sales tax returns are due the last day of the month after the filing period. For example, returns for annual filers are due January 31. If a due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.

New businesses estimate the amount of sales and use tax liability when applying for a license and are assigned a filing status. The Tax Commission reviews accounts annually and notifies businesses in writing if the filing status changes.

Why did I receive a billing notice when I had no sales and didn’t use my account?

Every sales tax license holder must file timely returns with the Tax Commission even if sales tax was not collected for that period.

If: You Should:
Your business is still active but you didn’t collect sales tax for a period File your return with zeros and submit to the Tax Commission.
Your business has been closed File form TC-69C, Notice of Change for a Tax Account, or notify the Tax Commission in writing.
Your business has changed ownership, business name, or business location File form TC-69C, Notice of Change for a Tax Account.

Note: Failing to file returns on time can result in penalties and interest. Further delay could result in liens against your property.

I am selling my business. What should I do?

If you are selling a business, Utah law requires you to:

  • File final tax returns within 30 days of the business sale.
    • For special fuel tax, file final returns within 15 days of the business sale.
  • Close all open tax accounts with the Utah State Tax Commission. Tax licenses are not transferable*.
  • Provide the purchaser with a Letter of Good Standing from the Utah State Tax Commission showing no sales or special fuel taxes are owed.

* If business ownership changes, but the federal employer identification number (FEIN) is allowed to stay the same by the IRS, the new owner(s) is not required to obtain new tax account numbers with the Utah State Tax Commission (USTC). However, the new owner(s) must notify the USTC with the new owner and officer information. If you are purchasing or selling a business and need to know if this applies to you, legal counsel or the assistance of a professional accountant may be needed.

I am purchasing an existing business. What should I do?

If you are purchasing a business, Utah law requires you to:

  • Apply for new tax licenses. Tax licenses are not transferable*.
  • Have the seller provide you a Letter of Good Standing from the Utah State Tax Commission showing no sales or special fuel taxes are owed.
  • Withhold any amount of unpaid tax from the purchase price to pay to the Utah State Tax Commission within 30 days of the final sale of the business.

If you are purchasing a business, you could be held liable for previous sales and special fuel taxes the business may owe if you do not meet the requirements above.

* If business ownership changes, but the federal employer identification number (FEIN) is allowed to stay the same by the IRS, the new owner(s) is not required to obtain new tax account numbers with the Utah State Tax Commission (USTC). However, the new owner(s) must notify the USTC with the new owner and officer information. If you are purchasing or selling a business and need to know if this applies to you, legal counsel or the assistance of a professional accountant may be needed.

Are services taxable?

Certain services are taxable. For example, charges for labor to repair, renovate or clean tangible personal property are taxable. See Publication 25, General Sales Tax Information for details.

What is the difference between real property and tangible personal property?

Real property, realty or real estate is:

  • Any right, title, estate, or interest in land including all minerals located in, on, or under the land.
  • All buildings, fixtures, and improvements to the land that are permanently attached.
  • All water rights, rights-of-way, rents, issues, profits, income, tenements, inherited property, claims (including mining claims), and privileges belonging to, used, or enjoyed with the land or any part of the land.

See Pub 42, Sales Tax Information for Sales, Installation and Repair of Tangible Personal Property Attached to Real Property for details.

Tangible personal property:

  • Is property that may be seen, weighed, measured, felt, touched or is in any manner perceptible to the senses.
  • Includes electricity, water, gas, steam, and prewritten software.

Tangible personal property is NOT:

  • Real estate or any interest or improvements in real estate that become a permanent part of the real estate.
  • Bank accounts, stocks, bonds, mortgages, or notes.
  • Insurance certificates or policies.

Is Interstate Commerce exempt from sales and use tax?

Interstate commerce does not exempt a sale from sales and use tax. Interstate commerce may change the state where sales and use tax are due.

  • Sales of goods, other than motor vehicles and boats, purchased in Utah and removed from Utah by the purchaser or their agent are subject to Utah sales and use taxes.
  • Sales of goods, other than motor vehicles and boats, purchased in Utah and shipped (including drop-shipping) by the seller or their agent to another state are not subject to Utah sales and use taxes.
  • Sales of goods purchased in another state and brought into Utah by a resident of Utah or to be used to conduct business in Utah are subject to Utah sales and use tax to the extent they have not already been taxed in another state.
  • Sales of goods, other than motor vehicles and boats, purchased in another state and shipped (including drop-shipping) by the seller or their agent into Utah are subject to Utah sales and use taxes.
  • 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.
  • Sales of motor vehicles and boats purchased in Utah are subject to Utah sales and use tax unless the vehicle or boat is not registered in Utah and is either:
    • not used in Utah, or
    • used in Utah, if the vehicle is used for:
      • non-business purposes, for a period of not to exceed 30 days in a calendar year; or
      • business purposes, for the time period need to transport it to the borders.

If Utah sales and use tax is due on a transaction and the seller does not collect the tax the purchaser must pay use tax on the purchase price of the transaction.

What is the difference between sales and use tax?

Sales tax applies to retail sales and leases of tangible personal property, products transferred electronically, and certain services purchased for storage, use or consumption in Utah. The seller collects sales tax from the buyer and pays it to the Tax Commission. Use tax applies to purchases of tangible personal property, products transferred electronically, and certain services when sales tax is due but is not collected by the seller. If you purchase an item for use in Utah from an out-of-state retailer or on the internet and the retailer or internet seller does not collect the sales tax, then you must pay use tax on the item directly to the Tax Commission.

If you have or are required to have a Utah Sales and Use Tax License, you must report and pay the use tax on your Utah Sales and Use Tax Return (Form TC-62S or Form TC-62M).

If you do not have and are not required to have a Utah Sales and Use Tax License, you must report the use tax on your personal Utah Individual Income Tax Return (Form TC-40) or Utah business income tax return (Form TC-41, TC-65, TC-20, TC-20S or TC-20MC).

See administrative rule R865-21U-6.

How do I get a sales tax exemption number for a religious or charitable institution?

Complete Form TC-160, Application for Sales Tax Exemption Number for Religious or Charitable Institutions.

Attach a copy of the determination letter from the IRS qualifying your organization as exempt from tax under Section 501(c)(3) of the Internal Revenue Code.

Mail all information to:

Religious and Charitable Section
Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134-3212

What is an exemption certificate?

Purchasers may provide a seller an exemption certificate showing that they are exempt from Utah sales and use taxes. Sellers who have accepted an exemption certificate in good faith do not need to collect sales tax from the purchaser and may report the purchase price as exempt on their Utah Sales and Use Tax Return. Retain the completed exemption certificate in your records. Records must be kept for three years.

Acceptable exemption certificates are:

  • TC-721 – Exemption Certificate
  • TC-721A – Sales and Use Tax Exemption Affidavit for Exclusive Use Outside Utah (motor vehicles and boats)
  • TC-721DP – Sales and Use Tax Exemption Certificate for Direct Payment Permit
  • TC-721G – Exemption Certificate for Governments & Schools
  • TC-721NR – Sales Tax Exemption Certificate for Non-Utah Retailers Accepting Merchandise Delivery in Utah
  • TC-73 – Sales Tax Exemption Contract (for religious and charitable organizations)
  • TC-719 – Sales and Use Tax Exemption Affidavit for Authorized Interstate Carriers

Utah also accepts the multi-state Uniform Sales & Use Tax Exemption/Resale Certificate.

What is my sales tax rate?

Your sales tax rate depends on where you are doing business in Utah and the type of business you are conducting. Businesses shipping goods into Utah can look up their customer’s tax rate by address or zip code at tap.utah.gov. Tax rates are also available online at Utah Sales & Use Tax Rates or you can contact the Tax Commission at 801-297-2200 or 1-800-662-4335. Tax rates may change quarterly.

Are transportation or delivery charges in connection with the sale of goods taxable?

Delivery charges are charges by the seller of tangible personal property, products transferred electronically or services for the preparation and delivery to a location chosen by the buyer. Delivery charges include (but are not limited to): transportation, shipping, postage, handling, crating or packing. If the delivery charge is separately stated on the invoice to the customer, the delivery charge is not subject to sales or use tax. See the definition of sales price in Utah Code 59-12-102.

Why didn’t I receive my sales tax return in the mail?

If you changed your business name or address without notifying the Tax Commission, your form may have been returned as undeliverable. If you did notify us, the update may not have occurred in time to reflect the correct information in your billing cycle.

Can I file using substitute forms?

Yes, if the forms have received approval from the Tax Commission. See Guidelines for Substitute Utah Tax Forms for substitute forms requirements.

Can I get sales tax refunded if I purchase a vehicle and then total the vehicle in an accident soon after the purchase date?

No, a sales tax refund won’t be granted in this situation. Sales tax is a “transaction tax”, meaning it is a tax on the SALE of the vehicle, not the vehicle itself. If a vehicle is destroyed after the transaction, it doesn’t affect the sales tax on the transaction. Please see Tax Commission rule R865-19S-2 Nature of Tax for more information.

Where can I get more information?

Attend one of our workshops for more complete information on sales and use taxes in Utah.

Please note . . .

TC-69 Form Usually Requires Additional Schedules

When submitting a TC-69 paper form, you MUST also include the appropriate schedule(s). If you do not include the correct schedule(s), your business registration will be delayed.

Note: To save time and ensure all needed schedules are included, you can apply for a tax account online.

Please note . . .

Sales tax filing is changing

All Utah sales and use tax returns and other sales-related tax returns must be filed electronically, beginning with returns due Nov. 2, 2020. File electronically using Taxpayer Access Point at tap.utah.gov.

This includes:

  • Third quarter, July-Sept 2020 (quarterly filers)
  • September 2020 (monthly filers)
  • Jan – Dec 2020 (annual filers)
  • All related schedules

You can continue to the PDF form below, or go to TAP to register and begin filing electronically now—no need to wait until the deadline!