Colorado: Online Payment Processor Not Deemed Retailer or Marketplace, No Sales Tax Duty

• The Colorado Department of Revenue ruled that an out-of-state online payment processor is not considered a retailer or marketplace facilitator.
• The payment processor had no control over merchants’ e-commerce platforms, inventory, or sales activities.
• The company’s role was largely invisible to end-customers, aside from appearing in terms of service and billing statements.
• As a result, the payment processor is not responsible for collecting or remitting Colorado sales tax on the merchants’ transactions.

Source: deloitte.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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