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How Utah Handles Tax on Shipping

Learn how Utah handles sales tax on shipping charges

Updated this week

Utah taxes shipping charges when they’re tied to taxable goods.


General Rule

  • Taxable: Delivery is taxable if taxable goods are included in the sale.
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  • Exempt: If all goods shipped are exempt, shipping is exempt as well.


Handling Charges

Handling and combined “shipping & handling” charges are always taxable.


Best Practices for Compliance

  • Separate delivery clearly on invoices.

  • Review mixed orders carefully, as taxable goods make the shipping taxable.


Example

  1. Shipping taxable appliances for $800 with $50 delivery → $50 is taxable.

  2. Shipping exempt groceries with $50 delivery → $50 is exempt.


Stay Compliant with Kintsugi

Utah’s rules directly follow the taxability of goods sold. Kintsugi Intelligence automates this to avoid errors.


⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.

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