Each state imposes taxes on certain types of sales, though the rules differ from one state to the next. Businesses that sell taxable goods in Colorado are required to collect sales tax from customers and remit it to the state. The sale or lease of tangible goods is subject to sales tax in Colorado. Examples of tangible property include clothing, furniture, vehicles and jewelry. Colorado does not impose sales tax on most personal services such as haircuts, home repairs and consulting. However, if you sell products in connection with a personal service, you might still be required to collect tax on the sale of the products.
Types of Colorado Sales Tax Licenses
Ways to Apply
Colorado Sales Tax Reports
In Colorado, if you collect less than $15 in sales tax each month, you’ll file an annual return. If your business collects less than $300 in sales tax per month, you’ll file a quarterly return, and if your business collects more than $300 in sales tax per month, you’ll file monthly. After your filing frequency is established, you must continue to file on that schedule until the state tells you to file on a different schedule, even if you collect zero sales tax in a particular month.
With a background in taxation and financial consulting, Alia Nikolakopulos has over a decade of experience resolving tax and finance issues. She is an IRS Enrolled Agent and has been a writer for these topics since 2010. Nikolakopulos is pursuing Bachelor of Science in accounting at the Metropolitan State University of Denver.