What is An Arbitrage Sale?
An Arbitrage sale is the process where a person buys products from retail stores when the products are available at discounted prices and in clearance sales and sells them online at a price that is usually the original price of the product or a slightly higher price. The difference between the discounted price and resale price of the product is the online seller/retailer profit from arbitrage sale.
Basically, the same rules apply to conduct business in the state of Utah, whether it is a hobby, arbitrage, dummies or permanent business, and in order to legally protect your business and use your business name legally from any future sale disputes and complications, it is recommended to apply for a business license from the State of Utah by completing all filing requirements.
Business Registration with the Utah Secretary of State: The business name is registered in Utah, if you are using a business name to promote your business.
Sales and Use Tax Permit Utah for the Arbitrage Sales:
Sales and Use tax are applied to the Department of Revenue Utah to conduct arbitrage sales to collect sales tax from the end user on retail sales.
The state of Utah requires you to collect sales tax on online retail sales from the end users on the taxable items, so you will also be needing a sales tax permit to collect/pay sales taxes on your online sales. Please visit the Utah State Commission Website for online application or submit form TC-69 by mail.
