In Utah, qualified nonprofits have a unique opportunity to save on sales tax—but the rules are strict, and missing a step could cost you. Whether you're making small purchases throughout the year or entering into large vendor contracts, understanding how Utah's sales tax system works is essential.

This guide breaks down exactly when your nonprofit must use an exemption, when you can file for a refund, and how Givefront automates the process, so you never overpay or miss a deadline.

Utah Sales Tax Basics for Nonprofits

Most states either exempt nonprofits from paying sales tax or offer a refund process. Utah does a bit of both.

There are two main pathways for nonprofits to save on sales tax:

1. Exemption at the Point of Purchase (required in some cases)
2. Refund via Form TC-62N (allowed for qualifying small purchases)

To access either, your organization must:

• Be a registered 501(c)(3)
• Apply for and receive a Utah Sales Tax Exemption Number by filing:
  📄 Form TC-160 – Sales Tax Exemption Application

Once approved, your organization can either avoid tax at checkout or request a refund, depending on the circumstances.

When You Must Use the Exemption at Checkout

There are cases when nonprofits are not eligible for refunds and must take the exemption at the time of purchase, by presenting a Utah exemption certificate (Form TC-721).

You must use the exemption at the point of sale if:

• The purchase total is $1,000 or more
• The seller is a public utility (e.g., water, electricity)
• A contract exists between the nonprofit and the seller

In these scenarios, Utah will not issue refunds if tax is mistakenly paid. The only way to avoid the tax is to present Form TC-721 at the time of sale.

📄 Download Form TC-721 – Exemption Certificate

When You Can File for a Refund (Form TC-62N)

If your purchase is:

• Under $1,000,
• Paid with organizational funds, and
• Not utility-related or under a contract,

You can file for a refund of the sales tax paid.

Here’s how:

📄 Form TC-62N – Sales Tax Refund Request

• Refunds must be mailed—Utah does not accept electronic submissions
• You may only file once per month (you get 12 filing coupons annually)
• You must submit receipts for purchases made in that month only
• Refunds must be claimed within 3 years of the purchase date

What You’ll Need to File

Utah requires strong documentation to process a refund:

• A valid Utah exemption number (from TC-160)
• Receipts showing:
  • Vendor name
  • Date of purchase
  • Items purchased
  • Exact sales tax amount paid
• Receipts must be retained for 3 years
• Only actual Utah (and local) sales tax amounts shown on receipts may be claimed

How Givefront Makes the Process Seamless

Staying compliant with Utah’s exemption and refund rules can be tedious—especially with monthly limits, paper-only filing, and strict documentation rules.

That’s where Givefront comes in.

We’ve built nonprofit-first expense tools to make your sales tax recovery automatic:

• Auto-collect receipts from staff via text or email
• Detect and extract sales tax line items instantly
• Flag any receipts that exceed the $1,000 exemption threshold
• Track your monthly submissions and help ensure nothing gets missed

Most nonprofits we work with recover $2,000 to $10,000 per year that would otherwise be lost—and they do it without spreadsheets, stress, or paperwork pileups.

Best Practices to Maximize Your Refund

• Always use nonprofit payment methods (not personal cards or reimbursements)
• Present Form TC-721 for any purchase $1,000+
• Centralize receipts by month (Givefront does this for you)
• File Form TC-62N every month—don’t let your 12 coupons go unused
• Store all receipts for 3 years, in case of audit
• Review your contractor/vendor relationships to confirm which rules apply

Don’t Let Sales Tax Drain Your Budget

Utah’s system requires some homework—but the savings are real. With careful tracking and smart tools, you can make sure every qualifying dollar is either exempted at checkout or refunded shortly after.

The difference between doing it manually and doing it with Givefront?
Saving over 5 hours per month—and thousands of dollars per year.

Let Givefront do the work, so you can focus on your mission.

🌐 Book a demo
📧 contact@givefront.com