Information for in-state retailers
Note: This page will be updated with new information. Please check back for updates.
What's changing?
Effective Dec. 1, 2018, the Colorado Department of Revenue will adopt new sales tax rules. The new rules state that sales tax must be collected and remitted based on the jurisdiction's tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer's jurisdiction. This includes any applicable state-administered local and special district taxes. For example, if a retailer delivers taxable goods to a customer's address, which is outside the jurisdiction of the retailer, sales tax must now be collected at the rate effective for the customer's address, not the taxes that are in common between the customer's address and the seller's location, as was the case previously. For a complete list of location/jurisdiction codes for sales tax filing go here.
What isn't changing?
Sales where the customer purchases the taxable good at the seller's place of business will continue to be taxed at the rate in effect for the retailer's business location, as was the case previously.
More on the rule change.
Frequently Asked Questions
For each place you deliver to, you will need to add a non-physical location in your Revenue Online account.
To Create a Revenue Online Account
To create a Revenue Online logon:
1. Go to Colorado.gov/RevenueOnline.
2. Under "Sign Up," click on "Create a Login ID."
3. Follow the steps to create a Revenue Online Login. Use the letter ID on this letter at Step 3.
4. Once you have submitted your request, you will receive a confirmation email.
To add a non-physical location for the state-collected jurisdictions in Colorado you ship to:
1. Identify the jurisdictions you need to add. Refer to DR 0800.
2. Log into your Revenue Online Sales Tax account. Under "I Want To," click on "Add Non- Physical Locations."
3. Follow the steps to add non-physical locations to your sales tax account.
4. Once you have completed your request, you will receive an email confirmation.
What is the difference between a physical and a non-physical location?
A physical location is your brick-and-mortar store or stores. You always will have to file a return for these locations. A non-physical location can be anywhere in Colorado you deliver a taxable good; you would only need to file a return for these locations in instances where you have made taxable sales to those locations.
What if I deliver taxable goods to a hundred different tax jurisdictions, would I need a non-physical location for each of those jurisdictions?
Yes, you would need to create a non-physical location for every location to which you deliver a taxable good.
How frequently do I have to file?
Sales tax returns are filed monthly by default unless approval to file quartely or annually has been granted by the Department. Monthly returns are due the 20th day of the month following the reporting period. For more information visit Colorado.gov/Tax/Sales-Tax-File or watch this short video.
How can I file Colorado sales tax?
Filing Electronically
Log in to Revenue Online. (If you do not have a login click here.)
Access your sales tax account.
Find the filing period you are reporting and click on File Return.
File your return. There are three ways to file electronically in Revenue Online.
Prepare the return in Revenue Online. Select the method File Retail Sales Tax Return. If you have more than one business location, you must file a separate return in Revenue Online for each location
Upload an XML file. Select the method Upload a Spreadsheet or XML file. Upload the XML file created using an Approved Sales Tax Software Vendor. This is the preferred upload method.
Upload a spreadsheet. Select the method Upload a Spreadsheet or XML file. Upload an accepted spreadsheet file. Multiple Location Filers that do not use approved software: See the Sales Tax -- Spreadsheet Filing page.
Filing by Paper
If you cannot file through Revenue Online or another electronic method, please download the Retail Sales Tax Return Form DR 0100. Do not use old versions of the form. We cannot process old or photocopied forms.
When and how do I pay Colorado sales tax?
Payment is due by the 20th day of the month following the reporting period.
Electronic Funds Transfer
Businesses that pay more than $75,000 per year in state sales tax must pay by Electronic Funds Transfer (EFT). Any business can pay by EFT. You can set up EFT ACH debit or ACH credit through your account in Revenue Online. The EFT payment must be submitted by 4:00pm Mountain Time on the due date.
Online Payment in Revenue Online
If you are using Revenue Online to file your return, you may choose to pay by credit card or e-Check.
Check or Money Order
To ensure your payment is posted to your tax account, you must include the eight-digit Colorado Account Number (CAN) assigned to your account by the Department on the check or money order sent with the tax return. Omitting the CAN on your payment could result in your payment not posting properly and you receiving a Balance Due letter (Notice of Deficiency) from the Department. Note: The Federal Employer Identification Number (FEIN) is not the same as the CAN and will not post the payment to your account.
If you owe money and filed online, or with a tax software and want to pay by check or money order:
Make the check or money order payable to the Colorado Department of Revenue.
Write the Colorado Account Number (CAN) for the sales tax account on the check. Include the filing period dates and the words Sales
If I create a non-physical location for one month because I have sales there, but do not have any sales in the next month, do I still need to do a zero file for that location?
No, non-physical locations only require a return to be filed when sales are actively made in that tax jurisdiction for that month. Physical locations always require a tax return to be filed, even when there are no sales for that month.
What local sales tax do I need to collect in addition to state sales tax?
Local and special district sales tax due is based on the rates that apply where the purchased product is destined. The form Colorado Sales/Use Tax Rates (DR 1002) lists city, county and special district sales taxes that are collected by the state. Home Rule Cities for which the State does not collect local sales tax should be contacted directly. There are certified address database providers that have taxing information by address.
How do I identify jurisdictions I need to add?
You can find the jurisdictions either in DR 0800 or through the certified data providers list, which has taxing information by address.
These provider services have been certified by the Department as accurate. Taxpayers who use these certified databases will not be liable for sales and use tax otherwise owed to the State of Colorado and state-collected municipalities, counties and special districts if the database incorrectly designates the location of a sale, storage, use or consumption of taxable tangible personal property or services. This is the "hold harmless" provision in Colorado statute.
What is the difference between 'Home Rule' and 'Self-Collected' jurisdictions?
All self-collected jurisdictions are home rule jurisdictions, but not all home rule jurisdictions are self-collected jurisdictions. Some municipalities have elected a home rule designation which, among other benefits, gives them greater autonomy and control over the administration, collection and audit of tax within their jurisdictions.
What is the situation with self-collected jurisdictions?
The Colorado Department of Revenue is the single state authority to administer, collect and audit for state tax and state-collected local jurisdiction sales tax. Information on this website is applicable for sales into state-collected jurisdictions. The updated regulations in effect for the state and state-collected jurisdictions, delineate how a retailer must identify the tax to be collected from the purchaser, specifically Regulation 39-26-102(9)(3).
What about state-collected jurisdictions?
The Colorado Department of Revenue collects sales taxes for the State’s sales tax, all statutory jurisdictions (those that have not elected to go to home rule), plus the sales taxes for all special districts that assess a sales tax. State-collected jurisdictions include all special districts, 50 counties and approximately 150 municipalities, including 24 home-rule municipalities. There are two counties that self-collect and 72 municipalities that self-collect. Any self-collecting jurisdiction may opt-in to have the Colorado Department of Revenue administer, collect and audit sales tax for it.
In order to be state-collected the jurisdiction must confirm to a prescribed list of exemption elections and confirm to the State's tax base. There may be local ordinance changes required or other conforming actions necessary before the self-collected jurisdiction to qualify for the Colorado Department of Revenue could begin to administer, collect and audit as a state-collected jurisdiction.
What if I have more questions?
For more information visit https://www.colorado.gov/pacific/tax/information-state-retailers or email salestaxchanges@state.co.us.
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