Colorado: Sales Tax Handbook
How to file your sales taxes in Colorado
Once your business has a Colorado sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Colorado government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Colorado
In Colorado, you will always collect a sales tax based on your buyers' location. If the buyer is physically located in your store, that means you will charge the sales tax rate applicable in your jurisdiction. However, if an in-state buyer places an order remotely, you must charge the sales tax rate applicable to their in-state shipping address.
Colorado also has several cities that are considered "home rule", where the Colorado Department of Revenue does not collect local sales taxes. You will need to collect and remit local taxes separately in these cases.
Sales Tax Collection Discounts In Colorado
Colorado allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Colorado sales tax regulations
The collection discount is 3.33%, although the local option sales tax discount does varies between this amount and nothing. In the time between July first, 2009 and June thirtieth, the vendor's fee was temporarily eliminated.
Your Colorado Sales Tax Filing Requirements
Colorado recommends that all retailers use the online Colorado Revenue Online web portal to make their sales tax payments. Using this online portal, you can file Form DR 0100 - the Colorado Retail Sales Tax Return.
You will need to report the total amount of money your business received for all taxable and nontaxable sales and services, and then apply a services of calculations to determine the sales tax amount you must remit to the Colorado Department of Revenue. Tax owed can be paid online via bank transfer.
If you file your return and pay your tax due on time, you are entitled to keep 3.33% of the sales tax collected from your customers as a service fee to offset your time spent in collecting and remitting the tax.
To be timely, your sales tax returns must be filed "on or before the 20th day of the month" following the close of your tax period.
Colorado offers free live classes on how to collect and calculate sales tax for all registered business owners. You can sign up for a free class online at TaxSeminars.state.co.us.
Your Colorado Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period. For a list of this year's actual due dates, see our calendar of Colorado sales tax filing due dates.
It must be noted that if taxpayer's accounting period ends on a day other then the last day in the month, then return is due on twentieth day that follows the very last day of the accounting period.
Where To File Your Colorado Sales Tax Return:
Filing Your Colorado Sales Tax Returns Online
Colorado supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Colorado allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for taxpayers whose sales tax liability for the preceding calendar length year is greater than seventy five thousand dollars.
You can process your required sales tax filings and payments online using the official Colorado Revenue Online website, which can be found here . You should have received credentials to access your Colorado Revenue Online account when you applied for your Colorado sales tax license.
Filing Your Colorado Sales Tax Returns Offline
While it is highly recommended that you file online using the Colorado Revenue Online website, it is possible to file your required sales tax reportings offline using Colorado Form DR 0100, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Colorado Sales Tax Filing Address: Colorado Department of Revenue
Denver, CO 80261-0013
Please note that if you file your Colorado sales taxes by mail, it may take significantly longer to process your returns and payments.
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