topic If I run a small online resale business, am I eligible for a refund on the sales tax I pay on inventory? How do I file for that? in Get your taxes done using TurboTax

If I run a small online resale business, am I eligible for a refund on the sales tax I pay on inventory? How do I file for that?

sirhorn13-gmail- — Tue, 24 Feb 2026 07:27:05 GMT

This would be in the state of Utah.

Re: If I run a small online resale business, am I eligible for a refund on the sales tax I pay on inventory? How do I file for that?

DoninGA — Thu, 07 Sep 2023 21:01:30 GMT

You will need to contact your state concerning a refund of sales taxes.

TurboTax only handles federal and state income taxes.

Go to this Utah website for information - https://tax.utah.gov/sales

Re: If I run a small online resale business, am I eligible for a refund on the sales tax I pay on inventory? How do I file for that?

rjs — Thu, 07 Sep 2023 21:02:18 GMT

This forum is for questions about income tax, not sales tax, but I can give you some basic information.

You should not be paying sales tax on products that you buy for resale. You give each seller an exemption certificate so that they don't charge you sales tax. In Utah the exemption certificate is form TC-721. When you fill out the TC-721, check the "Resale or Re-lease" box.

Re: If I run a small online resale business, am I eligible for a refund on the sales tax I pay on inventory? How do I file for that?

Opus 17 — Thu, 07 Sep 2023 21:04:23 GMT

If you pay sales tax on inventory, you can include that as a deductible business expense.

However, I think that most states will give you a sales tax exemption when you are purchasing inventory that you sell on to other customers, as long as you charge sales tax on the finished product. You will have to check with the Utah Secretary of State or tax department to understand your eligibility for any exemptions as well as your obligations to collect sales tax from your customers.

I think it is unlikely you can get a refund for tax already paid, but you may be able to apply for an exemption from sales tax for future inventory purchases.