Colorado Sales Tax Guide
A step-by-step guide to understanding Colorado sales tax rules.
If you're selling taxable goods in the mile-high city, make sure you're managing your sales and use tax properly. Otherwise, you might end up with mile-high penalty and interest payments! Our Guide to Colorado Sales Tax can help you get started by teaching you the basics of proper sales tax management.
Table of Contents
Understanding where, when, and how to collect Colorado sales tax is no easy task. Whether you're collecting tax dollars at the point-of-sale or collecting Colorado internet sales tax, our guide will break down the sales tax compliance process into focused, easy to understand chapters.
Understanding whether you need to collect, file, and remit Colorado sales tax depends on a concept known as nexus. In this chapter, we'll take a look at situations that may trigger in Colorado such as storing inventory in the state, hiring state residents, and click-through nexus.
You'll want to get started establishing Colorado sales tax compliance by understanding how to get your business registered for the necessary sales tax permit. We'll walk you through the process and help you understand when is the best time to get your business registered in Colorado.
After you've registered your business with the Colorado Department of Revenue, you're ready to begin collecting sales tax. We'll review topics such as Colorado sales tax exemptions, sales tax holidays, and determining state and local sales tax rates.
Now that you're business is registered with the Colorado Department of Revenue and collecting sales tax, you'll need to file tax returns in an ongoing basis. We'll help you gain a deep understand of the process of filing sales tax returns. Topic covered include filing frequencies, filing on behalf of a client, and what happens if you file late.
Every business that registers to collect Colorado sales tax will be assigned a filing frequency. In this chapter, we'll take a look at the filing frequencies and associated due dates supported by the Colorado Department of Revenue.
We know, mistakes happen and, from time to time, sales tax filing deadlines are missed. In this chapter, we'll take a look at what penalties you may be required to pay should you miss your assigned Colorado sales tax filing date. We'll also consider interest charges for late sales tax payments.
The rise of the internet economy has made it possible for buyers around the world to order your products. Did you know shipping and handling may be taxable? In this chapter we'll cover sales tax on shipping and handling in Colorado. You'll want to pay attention here because there are some important details pertaining to invoicing you'll want to understand.