If your business is operating in Colorado, you may be required to register for sales tax with the Colorado Department of Revenue. Sales tax registration is necessary for collecting and remitting taxes on taxable goods and services sold within the state.
How to get a Colorado Sales Tax License
There are 3 sales tax setup tasks you may need to complete in Colorado to get your sales tax licence. You can follow the guide below to help you get registered directly with the Colorado agencies or use Mosey to do it.
Use Mosey to register for sales tax in Colorado.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
Colorado Sales Tax Exemption Application for Purchases for Corporation
501(c)(3) charitable and 501(c)(19) veteran organizations may qualify for a Certificate of Exemption that authorizes you to purchase items and services without paying state sales tax and state-administered local sales taxes when these items and services are used to conduct the organization's regular charitable functions. If you are qualified, file an Application for Exempt Entity Certificate (Form DR 0715) with the Colorado Department of Revenue. Note: You must attach a copy of each of the following with your application: (1) IRS Determination Letter, (2) Statement of group affiliation with national church, if applicable, (3) Latest financial statement reflecting sources of Colorado income/expenses, (4) Colorado Articles of Incorporation or Organization indicating your purpose and function, and (5) the most current Colorado Certificate of Good Standing.
Complete Application for Exempt Entity Certificate
Complete the Application for Exempt Entity Certificate (Form DR 0715) and gather all required documents.
File Application for Exempt Entity Certificate
Email your completed Application for Exempt Entity Certificate (Form DR 0715) and all required documents directly to the Colorado Department of Revenue, Sales Tax Accounting Section.
Denver Local Sales and Use Tax Setup for LLC, LLP, Corporation
Businesses making retail, sales, leases, or rentals of tangible personal property or taxable services in the city or for vendors with economic nexus in the city are required to obtain a Denver Sales Tax license. Businesses located outside the City and County of Denver are required to be licensed to collect and remit the Denver Retailer's Use Tax on taxable Denver retail sales if they are engaged in business within Denver. "Engaged in business in the City" means performing or providing services or selling, leasing, renting, delivering or installing tangible personal property, products or services, for storage, use or consumption, within the city or those who have economic nexus in the city.
Verify Online Account to File Sales and Use Taxes
If you have not done so already, visit the Denver eBiz Tax Center, select “Sign Up”, and fill in the information to create your online account to file and pay sales and use taxes.
Colorado Sales Tax License Setup for LLC, LLP, Corporation
A business must remit sales tax to the state and apply for a sales tax license if it is "doing business in the state." The Department of Revenue defines doing business as selling, leasing, or delivering tangible personal property or taxable services in Colorado. If you do not have a physical presences in Colorado, you are exempt from sales tax if the retail sales of goods and services made annually in Colorado in both the current and previous calendar years are less than $100,000. However, you must also notify customers of their obligation to remit use tax. SaaS is not considered a taxable service in Colorado if it is delivered to the purchaser through any of the following methods: (a) It is provided to the customer through an application service provider, (b) It is delivered to the customer by electronic computer software delivery, or (c) It is transferred to the customer by load and leave computer software delivery. Note: 501(c)(3) nonprofits making retail sales may be exempt from sales tax licensing if all of the following conditions are met: (1) Sales are for fundraising purposes, (2) The funds raised support the organization's charitable services, (3) Sales occur for 12 days or less in the year, and (4) Net proceeds don't exceed $45,000 annually.
Apply For a Colorado Sales Tax License
Log in to the MyBizColorado platform to apply for an out-of-state retailer's Sales Tax License.
Colorado Sales Tax Filing Requirements & Deadlines
There are 3 sales tax filing requirements & deadlines you may need to complete in Colorado. You can follow the guide below or use Mosey to do it.
Colorado Sales Tax Reporting for LLC, LLP, Corporation
Depending on your sales tax amount, you must file annual, quarterly, or monthly returns with the Colorado Department of Revenue (CDOR). Businesses with a sales tax liability of up to $15/month (or $180/year) must file annual returns on or before January 20th. Businesses with a sales tax liability between $15-$300 per month must file quarterly returns by the 20th of the month following the end of each quarter. Businesses with a tax liability of $300+/month must file monthly returns by the 20th of the month following the end of the filing period. If your business has $75,000+ per year in Colorado sales tax, you must remit payment via Electronic Funds Transfer. Note: 501(c)(3) nonprofits making retail sales may be exempt from sales tax reporting if all of the following conditions are met: (1) Sales are for fundraising purposes, (2) The funds raised support the organization's charitable services, (3) Sales occur for 12 days or less in the year, and (4) Net proceeds don't exceed $45,000 annually.
Create a Sales and Use Tax System Account
Visit the CDOR Sales & Use Tax System (SUTS) and register for an account.
Calculate Sales Tax Due
Log in to SUTS and click on "File Taxes Here via Excel Upload" to create a custom upload template. Then, follow the template instructions to calculate your sales and use tax, complete the file, and upload it back into SUTS.
File Sales Tax Return and Pay Taxes
After uploading your sales and use tax data file into SUTS, go to "Submit Sales and use Tax Calculation Form" to review and pay tax.
Denver Local Sales and Use Tax Return for LLC, LLP, Corporation
Businesses subject to Denver Sales and Use Tax must pay a tax rate of 4.81% on the purchase price paid or charged on retail sales (e.g., retail sales made online to Denver customers, leases, rentals of taxable tangible personal property, products) and on certain services. Denver Sales Tax is due on the 20th of each month following the respective filing period. Filing frequency is determined by the amount of average sales and use tax due each month: (a) For businesses with no sales history, an industry standard is used, (b) Businesses with an average due each month of $300 or more file monthly, (c) Businesses with an average due each month of $15.01 to $299.99 file quarterly or (d) Businesses with an average due each month of $15 or less file annually. Businesses can file and remit taxes through either the Denver eBiz Tax Services portal or the Colorado Department of Revenue’s Sales and Use Tax System to file Denver Sales and Use Tax Returns.
File Your Returns and Pay Taxes
Log in to your Denver eBiz Tax Center account to complete and file your returns and pay your taxes electronically.
Aurora Local Sales and Use Tax Return for LLC, LLP, Corporation
If you are licensed to do business in Aurora you are subject to the Aurora Sales and Use Tax a rate of 3.75% on the purchase price paid or charged on retail sales (e.g., retail sales made online to Aurora customers, leases, rentals of taxable tangible personal property, products) and on certain services. The Aurora Sales and Use Tax return is due on the 20th of each month following the respective filing period. Filing frequency is determined by the amount of taxable sales per year. Note: You must file a return even if you have no taxable sales in Aurora. SaaS is not considered a taxable service in Colorado if it is delivered to the purchaser through any of the following methods: (a) It is provided to the customer through an application service provider, (b) It is delivered to the customer by electronic computer software delivery, or (c) It is transferred to the customer by load and leave computer software delivery.
File Your Returns and Pay Taxes
Log in to your Aurora Tax & Licensing portal to complete and file your returns and pay your taxes electronically.
