Utah: Sales Tax Handbook
Are Software and Digital Products subject to sales tax?
While Utah's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Utah, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Utah.
Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Utah.
Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in Utah.
Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Utah.
Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Utah.
Customization of Canned Software
TAXABLE
In the state of Utah, any charges for modifications to the canned software which are not deemed reasonable and are separately identified and stated on the invoice are considered to be exempt.
Digital Products
TAXABLE
Sales of digital products are subject to sales tax in Utah.
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