If you sell taxable goods or services in Utah, securing a Utah sales tax permit is a legal requirement—whether you’re running a local shop, selling online, or setting up at a one-day event. But knowing which form to file, how Utah’s sourcing rules work, and whether you meet nexus thresholds can quickly get confusing.
From physical locations to remote seller laws and resale certificates, the fine print matters. This guide breaks it all down clearly. And if you’d rather skip the hassle, Hands Off Sales Tax (HOST) can take care of everything—start to finish.
What Is a Utah Sales Tax Permit?
If you’re selling tangible goods or taxable services in Utah, you’re required to hold the correct type of sales tax permit. But not all permits are the same—and choosing the right one depends on how and where you sell.
Sales & Use Tax License (Standard Permit)
This is the most common permit issued to in-state and out-of-state sellers with sales tax nexus in Utah. It allows businesses to collect and remit both state and local sales tax on retail sales of taxable goods and services.
Special Event License
Temporary sellers—such as vendors at craft fairs, festivals, or farmers markets—must obtain a special event sales tax license for each location or event. The Utah State Tax Commission uses this to track short-term, location-specific collections.
Direct-Pay Permit (Form TC-62DPA)
For large businesses that frequently purchase taxable goods but self-assess and remit use tax, Utah issues a Direct Payment Permit. This is less common and typically applies to manufacturers or large institutions.
Who Needs to Register? Nexus & Thresholds
Before collecting Utah sales tax, you must first determine whether your business has nexus with the state. Utah enforces both physical and economic nexus rules—and even short-term sellers are not exempt.
Physical Nexus
You are considered to have physical nexus in Utah if your business:
- Has a brick-and-mortar location in the state
- Employs staff or contractors who operate in Utah
- Stores inventory in a Utah warehouse or third-party fulfillment center (e.g., Amazon FBA)
These connections trigger an immediate obligation to register for a Utah sales tax permit.
Economic Nexus
If you’re a remote seller with no physical presence but you make over $100,000 in gross sales or complete 200 separate transactions in Utah during the current or previous calendar year, you’re required to register and collect sales tax.
Transient Sellers & Event Vendors
Anyone selling at fairs, expos, or pop-up events in Utah must apply for a temporary Special Event Sales Tax License using Form 790C. These permits are event-specific and require on-site collection and reporting.
Failing to register when required can result in penalties, interest, and retroactive tax liabilities.
Step-by-Step Registration Process
Registering for a Utah sales tax permit involves a few important steps, whether you apply online or by mail. Preparing the right documentation up front helps avoid delays.
Pre-Application Checklist
Before you start, gather the following details:
- EIN (Employer Identification Number) or SSN (for sole proprietors)
- Legal business name and structure (LLC, Corp, Sole Prop, etc.)
- NAICS code for your industry classification
- Estimated monthly or annual sales into Utah
These inputs are required when completing Form TC-69, Utah’s Tax Registration Application.
Online Registration via TAP
The fastest way to register is through Utah’s Taxpayer Access Point (TAP).
- Visit the TAP portal
- Select “Apply for tax account(s)”
- Choose Form TC‑69 and complete all sections
- Submit your application
Most online applications are processed within 7 to 14 business days, after which you’ll receive your Sales Tax Account ID and filing instructions.
Mail Registration Option
If you prefer paper filing, download and complete Form TC‑69. Mail the signed form to:
Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0700
Processing by mail generally takes 2–3 weeks.
Registering correctly from the start ensures your business can collect and remit sales tax legally and efficiently.
Tax Rates & Rate Sourcing Rules
Utah’s sales tax system combines a state base rate with varying local add-ons, making it important to understand where and how to apply the correct rate.
State and Local Rates
The statewide base rate is 4.7%, but cities and counties can impose additional local option taxes. Combined rates typically range from 6.1% to 8.7%, depending on the locality. For example, Salt Lake City often sits at the higher end of the range.
Rate Sourcing Rules
Utah uses origin-based sourcing for most transactions, meaning the applicable sales tax rate is based on the seller’s location, not the buyer’s. However, for event-based or temporary sales, tax is collected based on the event’s physical location—not your business address. This exception is especially relevant for transient vendors or pop-up shops.
Rate Lookup Tools
To ensure accuracy, the TAP portal offers a full Utah rate chart from the Utah State Tax Commission for reference.
Understanding these sourcing rules and rate variations helps you stay compliant and charge the correct tax to your customers.
Filing Requirements, Zero-Returns & Penalties
Once registered for a Utah sales tax permit, staying compliant means understanding your filing obligations—including how often to file, what happens if you owe nothing, and the consequences of missing deadlines.
Filing Frequency Rules
Utah assigns filing frequency—monthly, quarterly, or annually—based on your estimated or actual sales volume. Most new businesses begin with monthly filing, which can later be adjusted. High-volume sellers typically remain on a monthly schedule, while lower-volume businesses may shift to quarterly or annual filing.
Zero-Return Requirement
Utah requires all registered sellers to file returns even if no sales or tax is due. These are known as “zero-returns.” Failing to submit them can trigger non-compliance flags and future audits.
Penalties and Interest
Late returns are subject to a 2% penalty per month, up to 20% max, plus 1% monthly interest on any unpaid balance. Missing returns entirely may result in additional enforcement actions and potential permit suspension.
Due Dates
Sales tax returns are generally due on the last day of the month following the reporting period. If that day falls on a weekend or holiday, the due date rolls to the next business day.
Being prompt with filings and returns—even at $0—helps preserve your standing with the Utah State Tax Commission and avoids unnecessary penalties.
Resale & Exemption Certificate Procedure
In Utah, businesses can use resale or exemption certificates to purchase goods tax-free if the items are intended for resale or qualify under a valid exemption.
Form TC‑721
The primary document used is the Utah Sales Tax Exemption Certificate (Form TC‑721). Buyers must complete and provide this form to the seller at the time of purchase. It specifies whether the exemption is for resale, manufacturing, or other exempt purposes. Download TC-721
Seller Responsibilities
Sellers must verify the certificate is complete, signed, and includes a valid Utah sales tax number. If the buyer claims an exemption without a number (e.g., government or non-profit), the form must cite the applicable exemption category.
Recordkeeping
All certificates should be retained for at least three years in case of audit. Failure to secure proper documentation may make the seller liable for uncollected tax, interest, and penalties.
Managing Permits & Account Changes
Keeping your Utah sales tax permit information up to date is essential to maintaining compliance. Whether you’re expanding operations or winding down, changes must be formally reported.
Adding Locations or Activities
Use Form TC‑69B to add new business locations or tax account types under an existing registration. This can be done easily through the TAP (Taxpayer Access Point) system at tap.utah.gov.
Updating or Closing Accounts
If your business details change—like ownership, address, or legal structure—you must submit Form TC‑69C via TAP to update or cancel your sales tax account. When closing a business, you’ll also need to file a final sales tax return to report any last taxable sales and reconcile your account.
Neglecting to update account status can trigger penalties or continued filing obligations, even if the business is no longer operating.
Expert Compliance Without the Hassle: How HOST Supports Utah Sellers
Navigating Utah’s sales tax system can be time-consuming—especially with different permit types, changing nexus rules, and strict filing obligations. That’s where Hands Off Sales Tax (HOST) comes in.
HOST handles the full lifecycle of your sales tax compliance in Utah:
Registration Done Right
From selecting the correct permit type (Sales & Use, Special Event, or Direct-Pay) to filing Form TC‑69 through the TAP system, HOST ensures every field is accurate, every requirement met, and no step missed during your registration process.
Nexus Monitoring & Threshold Tracking
HOST monitors your in-state and economic activity to ensure you’re registered when required—especially if you cross Utah’s $100,000 or 200 transactions remote seller threshold.
Filing, Zero-Returns & Penalties Avoidance
HOST files returns on your behalf, ensures zero-returns are submitted when needed, and keeps your account penalty-free with on-time submissions.
Resale & Exemption Certificate Support
Using ResaleCertify, HOST helps generate unlimited valid resale certificate for all 50 states and for all your vendors.
Account Updates & Permit Changes
Need to add a location or close your account? HOST handles all updates via TC‑69B/C filings and ensures you meet final return requirements.
If you’d rather focus on growing your business instead of decoding tax forms, HOST is your turnkey compliance partner.
Stay Compliant, Confident, and Focused on Your Business
Utah’s sales tax system isn’t complicated by accident—it’s built to ensure every transaction is properly tracked and filed. From selecting the right permit to filing zero-returns, staying compliant requires more than good intentions. It requires consistency, accuracy, and up-to-date knowledge. That’s where most business owners struggle.
Hands Off Sales Tax (HOST) takes that burden off your plate. Whether you’re a local retailer, remote seller, or event-based vendor, HOST handles registration, filings, certificate management, and ongoing compliance. If you’re ready to stop guessing and start operating with confidence, reach out to HOST today for a personalized consultation.
Frequently Asked Questions
1. Do I need a Utah sales tax permit if I only sell at local events or craft fairs?
Yes. Transient or event-based sellers in Utah are required to register using Form TC-69A and collect sales tax at each event. Even temporary selling activity creates tax obligations under state law.
2. What’s the difference between a Sales & Use Tax Permit and a Special Event Permit in Utah?
A standard Sales & Use Tax Permit covers ongoing sales operations (physical or remote), while a Special Event Permit applies to short-term or one-time sellers like those at fairs, expos, or pop-ups. Special event sellers typically register through TC-69A and are assigned a unique event-based account ID.
3. How long does it take to get a Utah sales tax permit?
If you apply online via the TAP system, most permits are issued within 7 to 14 business days. Paper applications may take longer, especially if documentation is incomplete.
4. Is there a sales threshold for economic nexus in Utah?
Yes. Remote sellers must register if they exceed $100,000 in annual Utah sales or 200 separate transactions into the state during the current or prior calendar year.
5. What happens if I forget to file a zero return?
Utah requires a return for every period, even if no sales tax is due. Failure to file a zero-return can trigger penalties, interest, and even account suspension. HOST can ensure filings are submitted accurately and on time.
