Colorado

Colorado

Standard rate: 

2.9% – 11.2%

Reduced rate:

0-2.9%

Sales tax-free products and services:

  

Who is obliged to register sales tax:

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.

Threshold:

Remote dealers without sufficient physical but with economic presence for establishing nexus in Colorado, must register to collect sales tax, if that have the $100,000  in retail sales. If retail sales are less then $100,000 you don’t need register.

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.

Registration procedure:

You can be registed online on the Colorado Department of Revenue website.

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 to 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.