Utah State Tax Commission Publication 71, Sales Tax Information for Marketplace Sellers and Marketplace Facilitators, revised June 2025, explains how Utah sales and use tax rules apply to marketplace platforms and participating businesses. The publication clarifies rules for marketplace sellers with a Utah sales tax license. These sellers must still file Utah sales tax returns. They do not report marketplace-facilitated sales and bear no liability for the tax that the marketplace facilitator must collect. Utah treats marketplace facilitators as sellers of goods and services sold through the platform. Facilitators must collect Utah sales and related local taxes, including transient room, tourism, motor vehicle rental, and municipal telecommunications license taxes, after sales sourced to Utah exceed $100,000 in the current or prior calendar year. Out-of-state facilitators crossing this threshold begin collection on the first day of the calendar quarter starting at least 60 days after the threshold is exceeded. Publication 71 also outlines a limited safe harbor. Facilitators avoid liability for specific good-faith collection errors if the error rate remains within specified percentages for 2019-2022.
For taxable marketplace transactions, Publication 71 confirms Utah sales tax generally applies to the full purchase price of taxable products and to fees a marketplace charges buyers for use of the platform. Delivery charges, cash discounts, nonreimbursed coupons, and marketplace or payment processing fees charged to sellers fall outside the tax base. Facilitators source sales delivered to Utah using the buyer’s location, with special rules for lodging. They must maintain books and records, separating their own sales from sales facilitated for others, and must retain exemption certificates for sales to exempt customers. When a facilitator over-collects tax, the buyer requests a refund directly from the facilitator, who also remains responsible for adjustments on returned merchandise.
(Utah State Tax Commission, Publication 71, “Sales Tax Information for Marketplace Sellers and Marketplace Facilitators,” Rev. 06/25.)