Are massage service charges subject to Utah sales tax, and what about tangible products like lotion sold alongside the massage?

Plain-English summary

An athletic club that charges customers for massage services asked the Tax Commission for written confirmation that those charges are not subject to Utah sales tax. The Commission agreed, in a short and direct advisory opinion:

• Massage service charges are not taxable. A pure massage — the service itself — is not subject to Utah sales tax.
• But tangible products sold alongside a massage ARE taxable. If a client also buys a bottle of lotion for home use, that portion of the transaction is a taxable retail sale of tangible personal property.
• Separate statement is required. If the massage business doesn't clearly separate (itemize) the taxable product charge from the nontaxable service charge on the bill, the entire charge becomes taxable — the exemption for the service portion is lost if the two aren't broken out.
• The business owes tax on its own supply purchases. When the massage provider buys items it consumes while giving a massage (towels, lotion used during the session, not resold), it must pay sales tax on those purchases as the final consumer. But if it's buying inventory to resell directly to clients (like a retail bottle of lotion the client takes home), it can purchase that inventory tax-free under the resale exemption, then collect sales tax from the client at the point of resale.

What this means for you

Massage therapists, spas, and athletic clubs

Keep massage service charges and any tangible product sales (lotions, oils, retail items) as clearly separated line items on your invoices or receipts. Bundling them into one undifferentiated charge risks losing the exemption on the service portion entirely.

Businesses buying supplies to use while performing services

Distinguish between supplies you consume while performing a nontaxable service (pay sales tax when you buy them) and inventory you resell directly to customers (buy tax-free under the resale exemption, then collect tax when you sell it).

Accountants and tax professionals

This is a clean, simple bundled-transaction example: separate a nontaxable service from a taxable tangible-property sale by itemizing, or risk the whole charge being taxed. It's also useful shorthand for explaining the consumption-vs-resale distinction on a service provider's own supply purchases.

Common questions

Q: Do I have to charge sales tax on a basic massage in Utah?
A: No — massage service charges aren't taxable.

Q: What if I sell my client a bottle of lotion along with the massage?
A: The lotion is a taxable retail sale. Itemize it separately from the massage charge, or the whole bill becomes taxable.

Q: Do I pay sales tax on the towels and lotion I buy to use during massages?
A: Yes, if you're consuming them in providing the service. If you're instead reselling an item directly to the client as a separate purchase, buy that item tax-free under the resale exemption and collect tax when you sell it.

Citations and references

No specific statute or rule citation appears in the available text of this advisory opinion; it applies Utah's general sales tax framework distinguishing taxable tangible personal property from nontaxable services, and the bundled-transaction separate-statement principle.

Source

• Landing page: https://tax.utah.gov/commission/rulings/
• Original PDF: https://files.tax.utah.gov/tax/commission/ruling/96-001.htm

Original ruling text

96-001

Response
January 10, 1995

Request

XXXXX

Hello,
XXXXX

Could
you please send me a written statement saying that �massages� charged through athletic
clubs do not need to be taxed. Thank you so much.

XXXXX

XXXXX

RE:
Advisory Opinion Sales tax on massage services.

Dear
XXXXX,

We
have received your request for sales tax information pertaining to massage
services. We find as follows:

Charges
to your customers for a massage are not taxable. However, if you sell tangible personal property to your clients,
you must collect sales tax on that portion of the charge. That is, if your client purchases a massage
and also purchases a bottle of lotion for home use, the charge associated with
the sale of the lotion is taxable. In
that event, you must separately itemize taxable and nontaxable portions of the
charge or the entire charge is taxable.

Additionally,
when you are purchasing the items that you will use in giving a massage, such
as towels or lotions, you must pay sales on these purchases. If you purchase items for resale, you may
purchase them tax free.

If
you have other questions, please let us know.

For
the Commission,

Alice
Shearer

Commissioner