Utah imposes various requirements on purchasers doing business in Utah. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.
Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.
Resale exemptions. In Utah when you purchase property for resale in the regular course of business, either in its original form or as an ingredient or component part of a manufactured or compounded product, it is exempt from sales tax.
Resale exemption certificate. In Utah you may use the Multistate Tax Commission's uniform sales and use tax certificate or a copy of the sample exemption certificate form furnished by the Utah Tax Commission. The resale exemption certificate must include the following information:
- your signature as the purchaser
- your name and address
- your sales tax license number
- a description of the types of tangible personal property and services being purchased for resale
Blanket resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or services for processing or resale. However, blanket certificates may not be used to purchase property or services not covered by a blanket certificate. Sellers must periodically inquire whether the information on a blanket certificate is accurate and complete. If a seller has not accepted a blanket certificate in good faith, liability for the tax does not shift from the seller to the purchaser.
Purchases from out-of-state vendors. In Utah property brought into the state on which a sales or use tax has been paid in another state equal to or in excess of the Utah tax is not subject to tax in Utah.