TaxByte: Utah Simplifies Sales Tax Requirements for Remote Sellers | TaxValet

Utah has eliminated its 200-transaction economic nexus threshold. Effective July 1, 2025, only remote sellers and marketplace facilitators with over $100,000 in Utah sales must collect and remit sales tax—making compliance easier for many smaller businesses.

Who Needs to Know: Remote Sellers and Marketplace Facilitators

If your business sells into Utah, but doesn’t hit $100,000 in annual sales, you might no longer need to collect Utah sales tax.

This update matters most to:

• Online retailers and e-commerce businesses
  
  
• High-volume, low-dollar sellers (e.g., Etsy or eBay sellers)
  
  
• SaaS and digital product vendors
  
  
• Marketplace facilitators operating in Utah

For many businesses, especially those with lots of small transactions but low overall revenue, this change means one less state to worry about when it comes to sales tax collection.

What Changed in Utah’s Sales Tax Law

Utah removes the 200-transaction threshold. Previously, Utah’s economic nexus law required remote sellers to collect and remit sales tax if they either:

• Made 200 or more separate sales transactions, or
  
  
• Had $100,000+ in gross revenue from Utah customers in a calendar year
  
  

Effective July 1, only the $100,000 gross revenue threshold remains. This change:

• Simplifies compliance by removing a confusing transaction-count requirement
  
  
• Brings Utah in line with other states that have dropped the transaction threshold
  
  
• Applies to sales of tangible personal property, digitally transferred products, and taxable services meant for use in Utah
  
  

What Should You Do Next?

Steps for figuring out if you’re impacted (and what to do if you are):

• Look at your Utah sales over the past 12 months
   
  • If you made more than $100,000 from Utah customers, you still need to collect and remit sales tax
  • If you’re under $100,000, even with lots of transactions, you likely no longer need to collect Utah sales tax
    
    
• Keep solid documentation of your sales in case you’re ever audited
  
  

How TaxValet Can Help You Navigate This

No need to monitor every legislative change—we’ve got you covered.

As a TaxValet client:

✅ We monitor your transaction and revenue thresholds automatically.

✅ If your Utah obligations have changed, we’ll handle the deregistration or continued compliance for you.

✅ You won’t need to guess if you’re impacted—we do the math and paperwork so you don’t have to.

Need help making sense of your sales tax obligations in Utah or any other state? Contact TaxValet today to simplify your compliance and stay ahead of changes—without the headache.