You'll need to sign in or create an account to connect with an expert.
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.
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
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.
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.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Gab_A
Level 1
sandrakaymiller
New Member
Budman7226
Level 1
lw15
Level 3
karunt
New Member