Register Sales Tax Permit Colorado

 What is a Colorado Sales Tax License?

The Colorado sales tax license is used to collect sales tax from the customers on tangible taxable items or services.

What is a Colorado Consumer Tax?

• Consumer tax collected from the purchasers, if they bought taxable items from the out of state vendors without paying sales tax.
• It is also imposed to stop unfair competition from out of state suppliers.

Validity of the Colorado Sales Tax License

Most of the Colorado sales tax licenses are issued for two years and expire at the end of each odd-numbered year. You can renew Colorado sale tax license online at the Colorado Department of Revenue website. Each location sales tax, license must be renewed.

Types of Licenses

• You apply for a Colorado Standard Retail License, if conducting retail and wholesale from location.
• Colorado Wholesale License-You conduct wholesale only and sale goods to other suppliers.
  
• You apply for a Colorado single special event license, if you want to use it for a specific event only.
• Colorado Multiple Special Event License is issued to use for multiple events and it is issued for two years.
• Colorado Exempt Certificate For Non-profit, Charitable, School, Religious or Government Organizations-An organization should first obtain income tax exempt status 501(c) (3) from the Internal Revenue Service (IRS) if necessary.
• Colorado Exempt License For Contractors -- is used only for purchasing construction and building materials for tax-exempt organization projects.
• Apply for Colorado Small Home Businesses -- If all retail sales are from a private residence and the gross sales are less than $1,000 a year then a small home business is not required to hold a sales tax license.

 Cancellation of Colorado Sales Tax License

• A sales tax, license must be surrendered to the Colorado Department of revenue
• A final sales tax return must be filed
• All taxes must be paid along with the final sales tax return

Verification of Sales Tax License Colorado

You can verify the sales tax license number at the Colorado Department of Revenue Website, if it is valid or already applied for the business you are applying now.

How to Apply for Sales and Use Tax License in Colorado?

• There are two types of Colorado sales tax licenses.
• The Standard License is for those businesses with one or more permanent locations in Colorado.
• The Special Event License is for 1) businesses that have no permanent place of business but sell goods at fairs, festivals, bazaars, etc.
• and 2) businesses that meet the requirements for a Standard License, but also sell at other locations, such as fairs and festivals. Flea markets which are held on a regular basis are not considered special events. For information on selling at flea markets, see FYI Sales 55, Flea Markets and Swap Meets.
• Sales tax licenses provide a sales tax exemption to vendors on items purchased for resale. These licenses also obligate the licensee to collect all applicable state and local sales taxes and remit the money to the Colorado Department of Revenue.
• Standard sales tax accounts must be renewed every two years.
  
• If you have more than one permanent sales location, each location must have a license.
  
• If a retailer with a fixed permanent location elects to participate in a special sales event at a location other than the regular place of business, the retailer must also obtain a special event sales tax license.
  
• Ownership Type: Sole Proprietorship, Corporation, Partnership, Government, Fiduciary / Trust or Non-Profit.
• Social Security Number (Required for US residents only.
• Owner's Name (Enter full legal name of Business. If you selected Sole Proprietor owner type, enter first name, middle name, and last name.)
• DBA: (Enter full Doing Business As Name, if applicable.)
  
• Primary Business Activity
  
• Physical Location Address
  
• This registration form must be signed by a responsible party who is authorized to sign on behalf of the organization. The Proprietor must sign for sole proprietorship.
  
• Date Activity Begins in CO.
  
• The state may reject your application, if you owe sales tax to any of your prior business.
• You can request to the state for a duplicate copy, if you have lost your sales tax certificate.
• You will surrender the sales tax certificate and notify the state if planning to close the business.
• Purpose to Register Sales Tax Permit in Colorado.
  

Renewal of Colorado Sales and Use Tax License

The Colorado sales tax, license has to be renewed every after two years and filing fee to renew Colorado Sales and Use Tax license is $16.00 for each location.

Temporary Sales and Use Tax License Colorado

• Retailers who qualify for a temporary or occasional isolated sales treatment are also required to collect sales tax license to collect sales and use tax on the tangible taxable properties and report their gross sales and sales tax liability by April 15 following the calendar year to the Colorado Department of Revenue.
• The single event license costs $8 for each event.

Out of State Retailers doing business in Colorado

They have to follow the same protocol as local Colorado retailers to obtain sales tax, license and collect sales tax on taxable sales.

How to handle delivery charges to calculate sales and use tax  from Colorado purchaser?

• Charge for the transportation to the place where the title was passed.
• The title is deemed to have passed from the seller when the seller is no longer liable for any losses to the product in route. Unless it can be proven that the purchaser of tangible personal property assumes the risks of ownership during delivery.
• What was the agreement between a seller and a buyer? Will a seller collect sales tax  or buyer will pay use tax directly to the CDOR?

Recommended records to save for sales and use tax, to present the Department of Revenue for Audit and Review:

complete, accurate beginning and ending inventories
✔ purchase receipts
✔ sales receipts
✔ canceled checks/bank statements
✔ invoices
✔ dated delivery acceptance receipts showing location
✔ bills of lading
✔ all other account books and documents pertaining to the business.

If you make nontaxable sales to other retailers or wholesalers, remember

Close Sales and Use Tax License

• Colorado department of revenue will close your sales and use tax license account automatically, if any, licensed account, exclusive of wholesale accounts, that shows no sales tax remitted for any period of 12 consecutive months.
• It is recommended to close your account with the Colorado Department of Revenue, if you are closing out your business and pay all due taxes along with the final sales and use tax return.

Filing frequency to file sales and use tax returns Colorado

Colorado Sales Tax Filing Frequency:

• Annual filing, if sales tax, withholding is $15 or less per month.
• Quarterly filing, if sales tax under $300 per month: sales tax returns may be filed quarterly,
• If sales tax liability is $300 or more per month, sales tax returns must be filed monthly.
• Businesses that pay more than $75,000 per year in state sales tax must pay by electronically.
  
• Wholesale businesses with a sales tax liability of $180 per year or less can file annually.

Colorado Use Tax Filing Frequency:

• If the use tax liability is $15 or less per month in Colorado  use tax returns may be filed annually.
• If the use tax liability in Colorado is under $300 per month, use tax returns may be filed quarterly.
• If $300 or more use tax liability per month in the state of Colorado, use tax returns must be filed monthly
• State of Colorado Businesses that pay more than $75,000 per year in state use tax must pay by electronically.