Utah Sales Tax on Services, Installation, etc Utah: Sales Tax Handbook

Utah:

What purchases are taxable in Utah?

The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the Utah sales tax.

Section 1: Taxability of Goods and Services

What transactions are generally subject to sales tax in Utah?

In the state of Utah, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Some examples of items that are exempt from Utah sales tax are prescription medications, items used in agricultural processes,fuels, medical equipment, or items used in manufacturing.

This means that an individual in the state of Utah purchases school supplies and books for their children would be required to pay sales tax, but an individual who purchases medical equipment may not be required to charge sales tax.


Are services subject to sales tax in Utah?

The state of Utah does not usually collect sales taxes on the vast majority of services performed. However, there are some services which are taxed, for example services which include repairs, renovations, or installation, laundry services or dry cleaning services.

This means that a web designer would not be required to collect sales tax, while the owner of a dry cleaning company might be required to collect sales tax.

You can find a table describing the taxability of common types of services later on this page.

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Are shipping & handling subject to sales tax in Utah?

In the state of Utah, the laws regarding tax on shipping and handling costs are relatively simple. Essentially, shipping and handling charges are stated seperately on the invoice, then the shipping charge is not considered to be taxable. If the charges are not stated seperately, they are not considered to be taxable.

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Are drop shipments subject to sales tax in Utah?

"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Utah, drop shipments are generally subject to state sales taxes.

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Section 2: Taxability of Various Items in Utah

This table shows the taxability of various goods and services in Utah. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT
Clothing
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food TAXABLE *
Leases and Rentals
Motor Vehicles TAXABLE *
Tangible Media Property TAXABLE
Manufacturing and Machinery
Machinery EXEMPT *
Raw Materials EXEMPT
Utilities & Fuel EXEMPT
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Medicines TAXABLE
Newspapers and Magazines
Newspapers EXEMPT
Periodicals TAXABLE
Occasional Sales
General Occasional Sales EXEMPT *
Motor Vehicles TAXABLE
Optional Maintenance Contracts
General Optional Maintenance Contracts TAXABLE
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Pollution Control Equipment
General Pollution Control Equipment TAXABLE *
Services
Janitorial Services EXEMPT *
Transportation Services TAXABLE *
Software and Digital Products
Canned Software - Delivered on Tangible Media TAXABLE
Canned Software - Downloaded TAXABLE
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Customization of Canned Software TAXABLE *
Digital Products TAXABLE
Trade-Ins
General Trade-Ins EXEMPT
Vending Machine Sales
Food TAXABLE *
Merchandise TAXABLE

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/utah/sales-tax-taxability