☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Sep 15, 2022 11:13:34 AM

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.

0 2 363
2 Replies
Level 15
Sep 15, 2022 11:19:44 AM

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.

Level 15
Sep 15, 2022 12:16:40 PM

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.