Colorado Sales Tax on Software and Digital Products Colorado: Sales Tax Handbook

Colorado:

Are Software and Digital Products subject to sales tax?

While Colorado's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Colorado, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Colorado.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Colorado.

Canned Software - Downloaded
EXEMPT
Sales of canned software - downloaded are exempt from the sales tax in Colorado.

Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Colorado.

Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Colorado.

Customization of Canned Software
EXEMPT
Sales of customization of canned software are exempt from the sales tax in Colorado.

Digital Products
TAXABLE
Sales of digital products are subject to sales tax in Colorado.



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Source: http://www.salestaxhandbook.com/colorado/sales-tax-taxability/software-and-digital-products