Colorado DOR Clarifies Sales Tax Obligations for Out-of-State Retailers in General Information Letter

• Colorado DOR clarified sales and use tax requirements for noncollecting retailers
• Retailers must obtain a sales tax license and collect tax from purchasers
• Retailers remain liable for tax on all taxable sales made in the state
• Purchasers have duty to self-assess and pay use tax if sales tax not paid
• Retailers not conducting business in the state are not considered retailers under the statute
• Businesses can voluntarily obtain a sales tax license to collect taxes
• Letter represents opinion of Department personnel, not a specific determination
• Businesses may need to reach out to self-collected home-rule cities for local taxes
• Retailers are still responsible for sales tax even after canceling registration
• Businesses should track sales into the state of taxable property for potential audits or tax collection in the future.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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