What is a Utah resale tax exemption certificate?

Certain purchases and rentals can be made without the need to pay sales tax. Some examples are nails, fabric, and wood incorporated into a chair; items which will be rented out as real property or tangible personal property; and services that will be resold.

You may have to report any use taxes if you resell an item you purchased. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.

How do I get a Utah resale tax exemption certificate?

The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. Keep in mind though that the address on the certificate does not need to match up with your company’s location address; it just needs to have your proper business name listed and be current.

The initial certificate will suffice as long as all information is correct. There’s no need for you to send multiple copies. So if you’re looking to get a resale sales tax exemption certificate, make sure to keep these things in mind!

If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.

You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.

The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.