Failing to secure a Utah Sales Tax Permit can lead to costly penalties, fines, and potential disruptions to your business. For both in-state and remote sellers, understanding the intricacies of Utah’s sales tax laws is essential to avoid these risks. As tax regulations change, such as the significant 2025 threshold adjustment, it’s crucial to stay informed and compliant to protect your business.

This guide will walk you through the process of obtaining your Utah Sales Tax Permit, outline common mistakes to avoid, and provide expert insights to help you remain fully compliant.

Key Takeaways

  • Who Needs to Register: Businesses with physical presence in Utah, remote sellers exceeding $100,000 in sales or 200 transactions (until July 1, 2025), and marketplace facilitators.
  • What Is a Utah Sales Tax Permit: Official license from the Utah State Tax Commission to collect and remit sales tax legally.
  • Registration Process: Apply online through Utah’s Taxpayer Access Point (TAP) or via Streamlined Sales Tax Registration for multi-state compliance.
  • No Registration Fee: Utah does not charge fees to register for a sales tax permit.
  • Filing Frequency: Assigned based on sales volume; monthly, quarterly, or annual filing options.
  • 2025 Threshold Update: Effective July 1, 2025, the 200-transaction threshold is repealed; only $100,000 sales threshold remains.
  • Common Mistakes: Avoid incorrect business classification, missing info, misunderstanding nexus, and neglecting marketplace facilitator rules.
  • Post-Registration: Display permit, collect proper tax rates, file timely returns (including zero returns), and keep accurate records.

What is a Utah Sales Tax Permit?

Sales tax permit in the state of Utah, formally known as a sales and use tax license, allows businesses to collect sales tax on taxable goods and services sold within the state. This permit, issued by the Utah State Tax Commission, is required for businesses with either a physical or economic presence in Utah. It makes sure that businesses collect and remit sales tax to the state on behalf of their customers.

  • Who Needs a Permit:
    • In-state sellers with physical presence (e.g., offices, warehouses).
    • Remote sellers meeting specific economic nexus thresholds.
  • Consequences for Non-Compliance:
    • Failure to register can lead to fines, back taxes, and legal issues.

Both in-state sellers and remote sellers must complete sales tax registration Utah to remain compliant.

Do You Need to Register for a Utah Sales Tax Permit?

Determining whether you need to register for a Utah sales tax permit depends on several factors. Review this checklist to determine if you need to pursue Utah sales tax registration:

  • In-state sellers: If you have a physical presence in Utah (store, office, warehouse, employees), you need a permit.
  • Remote sellers: Out-of-state businesses selling to Utah customers must register if they exceed the economic nexus threshold.
  • Marketplace facilitators: Platforms that facilitate sales for third-party sellers must collect and remit sales tax on those transactions.
  • Service providers: Certain services are taxable in Utah, requiring providers to register.
  • Wholesalers: Even if you primarily sell exempt wholesale goods, you may need to register to issue resale certificates.

The concept of Sales Tax Nexus is crucial in determining your registration requirements. You can establish nexus through:

  • Physical Nexus: Having a physical presence like a store, office, warehouse, employees, or inventory in Utah.
  • Economic Nexus: Exceeding a certain threshold of sales or transactions in the state without physical presence.

For remote seller Utah sales tax registration, the current economic nexus threshold is:

  • Sales exceeding $100,000 in the current or previous calendar year, OR
  • 200 or more separate transactions in the current or previous calendar year.

Important 2025 Update: Utah has passed S.B. 47 (signed March 25, 2025), which repeals the 200-transaction threshold effective July 1, 2025.

After this date, remote sellers will only need to register if their Utah sales exceed $100,000 annually. This change significantly simplifies remote seller sales tax Utah registration requirements for smaller businesses.

Note: For official guidance, you can visit the Utah State Tax Commission website, which provides detailed information about registration requirements.

Step-by-Step: How to Get a Sales Tax Permit in Utah?

Registering for a Utah sales tax permit involves several key steps. Follow this process to make sure that your application is completed correctly:

Step 1: Prepare Documentation

Begin by compiling all necessary business details:

  • Federal EIN (or SSN for sole proprietors without employees).
  • NAICS code corresponding to your primary business activity (e.g., 454110 for e-commerce).
  • Ownership details, including names, addresses, and Social Security Numbers (SSNs) of all owners or responsible parties.
  • Business license number (if already registered with the Utah Department of Commerce).

Step 2: Online Registration via TAP

  • Access the Portal
    Search for Utah Taxpayer Access Point (TAP) and select “Apply for Tax Account(s) – TC-69”.
  • Complete the Digital Form
  • Business Structure: Specify entity type (LLC, corporation, etc.).
    • Tax Types: Check “Sales and Use Tax” and any other applicable taxes (e.g., transient room tax for hotels).
    • Location Details: Provide physical business address (P.O. boxes are insufficient for in-state businesses). Remote sellers may use out-of-state addresses.
  • Submit Electronically: Review entries for accuracy and submit. A confirmation number will display immediately.

Step 3: Mail Registration (Alternative)

  • Download Form TC-69
    Retrieve the TC-69 Business Registration Form from the Utah State Tax Commission website.
  • Complete Sections 1–4
    • Section 1: Business name, EIN/SSN, and entity type.
    • Section 3: Estimated monthly sales and start date.
    • Section 4: Ownership details (attach additional sheets if necessary).
  • Mail to Tax Commission
    Send the completed form to:
    “Utah State Tax Commission
    Registration Unit
    210 N 1950 W
    Salt Lake City, UT 84134”

Step 4: Post-Submission Process

  • Online Applicants: Receive a temporary permit number via email within 1-2 business days.
  • Mail Applicants: Allow 2-4 weeks for processing. Permits are mailed to the address provided.

Key Note: Check spam/junk folders for emails from @utah.gov. Missing documentation delays approval; the Tax Commission will notify you via mail if revisions are needed.

Step 5: Post-Approval Setup

  • Access TAP Dashboard: Use your permit number to create a TAP account for filing returns.
  • Verify Filing Frequency: The state assigns monthly, quarterly, or annual filing based on sales volume.

What Information Do You Need to Register?

Before beginning the Utah sales tax registration process, gather the following information to guarantee a smooth application experience:

Business Information

  • Legal business name and DBA (if applicable)
  • Business address (physical location)
  • Mailing address (if different)
  • Business start date
  • Description of business activities
  • Organizational structure (sole proprietorship, LLC, corporation, etc.)
  • Department of Commerce Entity Number (if applicable)

Tax Identification Numbers

  • Federal Employer Identification Number (EIN)
  • Social Security Number (for sole proprietors)
  • State business identification numbers (if already established)

Owner/Officer Information

  • Names and addresses of all owners, partners, or corporate officers
  • Contact information, including phone numbers and email addresses
  • Social Security Numbers of the responsible parties

Sales Information

  • Estimated annual sales subject to Utah sales tax
  • Need the date from when you’ll begin selling or making purchases in Utah
  • Types of products or services you’ll be selling
  • Whether you’ll be selling from a fixed location or online

Have this information ready before you start the application process to avoid interruptions and make sure of accuracy in your Utah sales tax permit application.

How Much Does It Cost to Register for a Sales Tax Permit in Utah?

Good news for businesses seeking a state of Utah sales tax permit, there is no fee to register for a sales tax license in Utah. This is particularly beneficial for small businesses and startups looking to minimize initial compliance costs.

Utah’s no-fee registration policy contrasts with several other states that charge initial registration fees. For example:

  • Some states charge one-time fees ranging from $10 to $100
  • Others may require periodic renewal fees

While the initial registration is free in Utah, businesses should budget for ongoing compliance costs, including:

  • Software or services to help track and calculate sales tax
  • Accounting services for proper tax management
  • Time spent preparing and filing returns

The absence of registration fees makes Utah sales tax registration more accessible for businesses of all sizes, allowing them to allocate resources to other aspects of compliance and business operations.

How Long Does It Take to Get Approved?

The time to process your Utah sales tax permit application varies depending on your registration method:

  • Online registration through TAP or One Stop Business Registration: Applications are typically processed within 3-5 business days, with some businesses receiving almost immediate approval.
  • Paper applications (Form TC-69): Allow approximately 15 business days for processing, as stated on the form itself.
  • Streamlined Sales Tax Registration: Processing times vary but are generally comparable to the state’s online system.

After submission, you’ll receive confirmation of your registration, which may come via email or mail depending on your selected notification method. Be sure to check your spam or junk folder if you’re expecting an email confirmation but haven’t received it.

If your application requires additional information or clarification, the Utah State Tax Commission will contact you, which may extend the processing time. To avoid delays, make sure all information is accurate and complete when submitting your application.

For businesses operating in multiple states, a Global Sales Tax Platform can streamline the process and help make sure of compliance across jurisdictions.

Common Mistakes to Avoid When Registering

When completing your Utah sales tax registration, watch out for these common pitfalls that can delay your application or create compliance issues:

  • Selecting the wrong business structure: Make sure your registration matches your actual business entity type (sole proprietorship, LLC, corporation, etc.).
  • Misunderstanding nexus requirements: Failing to correctly identify if you have economic or physical nexus in Utah.
  • Overlooking marketplace facilitator obligations: If you sell through marketplaces, understand both your and the marketplace’s responsibilities.
  • Providing incomplete information: Applications with missing or illegible information will be returned, causing delays.
  • Incorrect sales projections: While estimates don’t need to be perfect, significant underestimation may flag your account for review.
  • Failing to register before making sales: Utah requires you to register before you begin collecting sales tax, not after you’ve reached the threshold.
  • Forgetting to update contact information: Make sure your mailing address and email are current to receive important notices.

Avoiding these mistakes will help make sure of a smooth registration process and prevent future compliance headaches with your Utah sales tax permit.

What Happens After You Register?

Once your Utah sales tax permit application is approved, several key actions and responsibilities follow:

Immediate Next Steps

  • You’ll receive your official Utah sales tax license number and documentation.
  • Set up your online access to the Taxpayer Access Point (TAP) system for managing your account.
  • Begin collecting sales tax on taxable transactions at the appropriate rate for your location in Utah.

Filing Requirements

  • The Utah State Tax Commission will assign you a filing frequency (monthly, quarterly, or annually) based on your estimated sales volume.
  • Even with no sales, you must file “zero returns” by the due date to maintain compliance.
  • Most businesses are required to file and pay electronically through TAP.

Record Keeping

  • Maintain detailed records of all sales, exempt transactions, and sales tax collected.
  • Keep documentation of exemption certificates for any tax-exempt sales.
  • Store records for the period required by Utah law (generally at least four years).

Ongoing Compliance

  • Stay informed about sales tax rate changes in your jurisdiction.
  • Update your account information promptly if your business details change.
  • Consider setting calendar reminders for filing deadlines to avoid penalties.

Proper management of your Utah sales tax permit obligations helps you avoid assessments, penalties, and interest that can result from non-compliance. The Utah State Tax Commission provides resources to help businesses understand their ongoing responsibilities through their website and publications.

Special Considerations for Out-of-State or Remote Sellers

Remote sellers face unique considerations when going through Utah sales tax registration requirements:

Economic Nexus Thresholds

  • Current threshold: $100,000 in sales OR 200 transactions in Utah during the current or previous calendar year.
  • Important 2025 change: Effective July 1, 2025, Utah will eliminate the 200-transaction threshold. Remote sellers will only need to register if they exceed $100,000 in annual Utah sales.

Simplified Registration Options

  • Remote sellers can use the Streamlined Sales Tax Registration System (SSTRS) at sstregister.org to register in Utah, along with other participating states.
  • This can be particularly efficient if you need to register in multiple states simultaneously.

Marketplace Facilitator Laws

  • Utah requires marketplace facilitators (like Amazon, eBay, Etsy) to collect and get sales tax remittance on behalf of third-party sellers.
  • Sales made through registered marketplace facilitators are excluded from your economic nexus threshold calculations.
  • However, you may still need a Utah sales tax permit for direct sales or for sales through marketplaces that don’t collect tax.

Taxability Determinations

  • Remote sellers must understand Utah’s specific product taxability rules, which may differ from other states.
  • Digital products and services may have different tax treatment from physical goods.

Remote seller sales tax registration in Utah requires staying current with regulatory changes like the upcoming threshold adjustment. Out-of-state businesses selling into Utah should regularly review their sales data to determine when registration becomes necessary and adjust their compliance strategy according to the latest requirements.

Resources & Where to Register

To complete your Utah sales tax registration, use these official channels and resources:

Official Registration Portals

  • Taxpayer Access Point (TAP): Utah’s primary online registration system at tap.utah.gov
  • One Stop Business Registration: For registering with multiple Utah agencies simultaneously at business.utah.gov/registration
  • Streamlined Sales Tax Registration: For multi-state registration at sstregister.org

Forms and Documentation

  • Form TC-69: Utah State Business and Tax Registration form for paper applications.
  • Publication 37: Detailed information about business activity and nexus in Utah

Note: Tax bulletins and guides are available on the Utah State Tax Commission website

Help and Support

Note: Sales & Use Tax Forms & Publications section on tax.utah.gov

Updates and News

  • Subscribe to the Utah State Tax Commission’s email updates for notices about tax law changes
  • Check the commission’s website regularly for announcements, especially regarding the upcoming 2025 sales tax threshold change

For businesses managing multi-state registrations or seeking streamlined compliance, Commenda offers a comprehensive sales tax platform. Commenda simplifies the registration process and ongoing tax management for businesses operating in Utah and beyond, providing automated solutions for nationwide compliance needs.

Simplify Sales Tax Compliance with Commenda

Managing Utah sales tax permit requirements and compliance can be complex, especially with upcoming changes like the 2025 threshold adjustment.

Commenda simplifies the process with automated registration, multi-state compliance, and real-time threshold monitoring. Our global sales tax platform tracks your sales, alerts you when approaching economic nexus, and guarantees timely filing of returns.

Commenda’s expert guidance and personalized support help remote sellers, online businesses, and marketplaces stay compliant without the burden of going through complex tax laws.

Focus on growing your business while we handle the compliance, protecting you from penalties and assessments. Schedule a demo! ‍