How to Register for a Sales Tax Permit in Utah

Who Needs a Sales Tax Permit in Utah

In Utah, any business that sells tangible personal property, certain services, or products subject to sales tax is required to collect and remit sales tax to the state. This includes physical storefronts, service providers, and online sellers. 

The economic nexus threshold in Utah mandates that businesses with more than $100,000 in sales or at least 200 separate transactions in the state must collect sales tax, regardless of having a physical presence there. 

Examples include a local boutique, a taxable service provider, and an out-of-state online business that exceeds the sales threshold.

Steps to Register for a Sales Tax Permit in Utah

Follow the steps below to register for a sales tax permit in Utah. 

1. Prepare Your Documents

You will need to provide the following information: 

• Legal Business Name: Align the business name with what is registered with the Utah Division of Corporations.
• Physical Business Address: Provide a street address – no P.O. boxes are accepted.
• Federal Employer Identification Number (FEIN): Required unless operating as a sole proprietor without employees.
• Contact Information: Include primary contact phone numbers and email addresses.
• North American Industry Classification System (NAICS) Code: Used to classify the business industry.
• Date of Business Commencement in Utah: Clearly specify when the business began or is planning to start operations within the state.

2. Register Online via OneStop Business Registration

Visit the online portal to start the registration process. Click on “Register a business,” then complete the application accurately with the required information, review it thoroughly, and submit it through the portal.

3. Await Approval

After submission, it generally takes about 2-3 business days for approval. Once approved, you will receive your sales tax permit, allowing you to collect sales tax in Utah.

doola’s services, including Bookkeeping solutions, can help streamline this process and keep you compliant, allowing you to focus on growing your business.

Understanding Your Sales Tax Responsibilities in Utah

Businesses in Utah are typically required to file sales tax returns on a regular schedule—monthly, quarterly, or annually—based on sales volume. It’s crucial to apply the correct rates, which can vary by region, including state, county, and local levels. Utah may also offer certain exemptions and tax credits that can influence how sales tax should be collected and remitted.

Common Mistakes to Avoid

• Neglecting to obtain a sales tax permit when required.
• Misapplying sales tax rates across diverse jurisdictional areas.
• Missing filing deadlines leading to expensive penalties.
• Failing to recognize exempt sales, maintaining accurate documentation for resale certificates.

How to Maintain Compliance & File Sales Tax Returns

To file sales tax returns in Utah, access the Utah State Tax Commission’s online portal to submit returns and payments electronically. Using automated solutions can help ensure tax collection accuracy and compliance. 

Remember that doola’s financial services can assist with bookkeeping and tax, keeping your business compliant with ease. 

FAQs About Sales Tax Permits in Utah

How long does it take to get a sales tax permit? 

It generally takes about 2-3 business days for the Utah State Tax Commission to process a sales tax permit application.

Do I need to renew my sales tax permit? 

No, sales tax permits in Utah do not require renewal as long as the business remains in good standing with compliance and filing requirements.

What happens if I stop doing business in Utah? 

You must officially close your sales tax account and inform the Utah State Tax Commission.

Are online sellers required to collect sales tax in Utah? 

Yes, if they meet the $100,000 sales threshold or at least 200 transactions, online sellers must collect Utah sales tax.

Stay Compliant With doola 

Registering for a sales tax permit is necessary for businesses operating in Utah. Compliance requires awareness of submission deadlines, accurate tax accounting, and understanding exemptions. 

Businesses should consider professional assistance to assure all processes are correctly managed. For comprehensive solutions, doola can provide expert guidance to maintain compliance, making it simpler for businesses to flourish. 

Remember to use the Utah State Tax Commission resources for additional information and guidelines.