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ecoates
Level 1

Do I need to collect sales tax for my digital sales if I have less than 200 transactions? I live in Utah

In most states I don't need to collect sales tax unless I have 200 separate transactions in that state. Does it change if it's the state I live in? I don't have a physical location, I only sell online.
2 Replies
xmasbaby0
Level 15

Do I need to collect sales tax for my digital sales if I have less than 200 transactions? I live in Utah

We are here to help with income tax questions.   Your question is about  state sales tax.  You need to explore the sales tax laws of your state with the state itself.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Level 15
Level 15

Do I need to collect sales tax for my digital sales if I have less than 200 transactions? I live in Utah

You do have a physical location. It's where you live and conduct your online business. The fact that you are sitting in Utah when you conduct your business creates the physical presence, even if no customers come to your location. Since you have a physical presence in Utah, you must collect Utah sales tax on all sales to customers who are located in Utah. It doesn't matter that you make the sales online.

 

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