Changes in the Utah Economic Nexus Sales Tax

Sovos
January 11, 2021

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.

Enforcement date:
January 1, 2019.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous or current calendar year.

Included transactions/sales:
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.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
Share This Post

Latin America VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

January 25, 2021
CJEU Rules on Conditions for VAT Refund

The Court of Justice of the European Union (CJEU) has ruled that Member States must accept, as formally submitted, VAT refund requests that contain invoice identifiers other than sequential invoice numbers. In case C-346/19 (Judgment of 17 December 2020), an Austrian taxpayer’s VAT Refund application was rejected by Germany’s Federal Central Tax Office, on the […]

ShipCompliant
January 25, 2021
6 Highlights from the 2021 Direct-to-Consumer Wine Shipping Report

This January, Sovos ShipCompliant released the 2021 Direct-to-Consumer (DtC) Wine Shipping Report with our partner, Wines Vines Analytics. This report features exclusive data and insights on the state of the industry not tracked or reported on anywhere else. With wine shipments to consumers reaching a record $3.7 billion in 2020, there has never been a […]

ShipCompliant
January 22, 2021
The Data: Wine DtC Shipments and Off-Premise Retail (December 2020 Special Report)

The wine market is in greater flux than ever as producers, retailers and consumers navigate the impacts of a global pandemic. Keeping a pulse on marketplace data has never been so important given these shifting dynamics. Nielsen is collaborating with Wines Vines Analytics and Sovos ShipCompliant to provide a much more comprehensive view of the […]

IPT
January 21, 2021
HMRC’s Second IPT Consultation – Response Deadline Fast Approaching

HMRC, the UK’s tax authority, is asking for responses to its Insurance Premium Tax: Administration and Unfair Outcomes Consultation, by 5 February 2021. The first consultation and call for evidence for Insurance Premium Tax (IPT) was back in 2019 and questions focused on the modernisation of IPT and efficiency improvements for businesses and HMRC. It […]

EMEA VAT & Fiscal Reporting
January 21, 2021
How Ireland’s VAT Regime is Changing

As a result of Brexit, COVID-19, and the Finance Act 2020, the VAT regime in Ireland has and will continue to undergo numerous changes. Highlights of these changes are outlined below. Postponed Accounting and Reporting Changes Beginning in January all taxpayers have the ability to apply postponed VAT accounting to their imports from outside the […]