The Utah economic nexus sales tax was adjusted following the South Dakota v. Wayfair, Inc. Supreme Court decision. Utah now requires remote sellers to register, collect and pay sales tax if, in either the previous or the current calendar year, certain thresholds are met. We have outlined key points in those changes below.
$100,000 or 200 transactions.
Threshold applies to the previous or current calendar year.
Sales of tangible personal property, any product transferred electronically, or services for storage, use or consumption in Utah.
When You Need to Register Once You Exceed the Threshold:
Utah has not published guidance explaining exactly when remote sellers need to register. Remote sellers should consider registering and collecting tax as soon they exceed the thresholds above.
Summary: Utah requires remote sellers to collect and pay Utah sales tax if, in either the previous or the current calendar year, the remote seller:
- receives gross revenue of more than $100,000 from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in Utah.
- or sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in Utah in 200 or more separate transactions.
“Beginning with sales occurring on or after January 1, 2019, the 18 percent seller discount Utah previously offered remote sellers who voluntarily collected and paid Utah sales tax is no longer effective,” explains the Utah State Tax Commission.
Marketplace facilitators that have Utah nexus for their facilitated sales must have a Utah sales tax license and collect, report and pay sales tax on facilitated sales. Additionally, marketplace facilitators can have nexus on their own direct sales, on sales they facilitate, or both. Facilitators must determine nexus separately for their direct sales and their facilitated sales.
Both remote sellers and marketplace facilitators should work with the right partner to ensure that they remain compliant with all sales tax requirements, even if the laws change.
Utah Sales Tax Resources: Contact our team of experts for more information on the Utah economic nexus sales tax. Be sure to also visit our interactive sales tax nexus map, which has real-time updates on each state.