Colorado

Provinces
Colorado
Provinces
Colorado
About
Colorado
About
Colorado
Colorado
Colorado

Standard rate

The standard rate in Colorado for sales tax for 2024 is 2.9-11.2%.

Reduced rate

The reduced rate in Colorado for sales tax for 2024 is 0-2.9%.

Sales of tax-free products and services

There are no specific tax-free products and services listed in Colorado.

Who is obliged to register sales tax in Colorado

When you sell in Colorado, even with no physical location in the state, you need to register to collect and pay sales tax in Colorado.
Standard rate 2.9-11.2% Reduced rate 0-2.9% Threshold $100,000
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Threshold

Remote dealers without sufficient physical but with economic presence for establishing nexus in Colorado must register to collect sales tax if they have $100,000 in retail sales. If retail sales are less than $100,000 you don’t need registration. This threshold rule only applies to goods, as digital services are not subject to Colorado sales tax. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

  • If all your sales in Colorado come from the marketplace reseller platform, in this case, you can’t register for paying sales tax in Virginia. Your marketplace promoter pays the sales tax itself.
  • If you are selling through your own website, then you will need to register for paying sales tax if you meet the $100,000.
  • The marketplace facilitator should apply to obtain a sales tax license within 90 days after this threshold is exceeded ($100,000 as remote sellers) and begin collecting tax on the first day of the month following the getting of the license.
Marketplace facilitators are responsible for all duties related to the collection of taxes, including:
  •  Calculating the taxable price;
  •  Fix the sale and determine the applicable tax rates;
  •  Determining whether items and services are subject to tax;
  •  Determining whether a sale is tax-exempt.
Marketplace facilitators must keep any books, accounts, and records necessary to determine the correct amount of tax for a minimum of 3 years.

Sales tax payment and filing date

Depending on your tax liability, determine your filing frequency – either monthly, quarterly, or Annual:
  • Annual – $0 – $14.99;
  • Quarterly – $15.00 – $300.00;
  • Monthly – $300.01 and up.
Sales tax returns are always due on the 20th day of the month following the reporting period.  If the filing due date falls on a weekend or holiday, sales tax is due the next day. Quarterly filing periods end on the last days of March, June, September, and December.

Penalty and interest

If you fail to file a return by the due date, pay the tax due by the due date, or pay the correct account, within their return, for all state and state-administered local sales tax due – 10% of the unpaid tax, plus an additional 0.5% for each month the tax remains unpaid, not to exceed a total of 18%.

Discounted

Discounted rate is allowed if:
  • The retailer pays the tax in full prior to the issuance of a notice of deficiency;
  • The retailer pays the tax in full within 30 days of the issuance of a notice of deficiency; or
  • Within 30 days of the issuance of a notice of deficiency, the retailer enters into an agreement to pay the tax in monthly installments.

Exemption

You may use an exemption certificate.

Colorado Sales Tax Holiday

Colorado currently does not have any sales tax holidays.

Colorado Sales Tax Nexus:

  • Physical Nexus: Physical presence, such as having an office, warehouse, employees, or inventory in the state, establishes a Nexus for sales tax purposes​.
  • Economic Nexus: An economic Nexus is established for sales tax purposes if a business has more than $100,000 in gross sales in Colorado during the current or previous calendar year​.
October 10, 2024 88
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