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Can I collect sales tax from customers in different states without violating tax laws in Colorado? What are the requirements?
Yes, you can collect sales tax from customers in different states, but you need to ensure that you are complying with the tax laws of each state. In Colorado, you are required to collect sales tax on the sale of tangible personal property at retail or the furnishing of services, as provided in CORS 29-2-105 [2.2].
Requirements for Collecting Sales Tax in Colorado
To collect sales tax in Colorado, you need to register for a sales tax license with the Colorado Department of Revenue [2.2]. You can register online through the Colorado Business Express portal [2.2]. Once you have registered, you will receive a sales tax license and a sales tax account number [2.2].
You are required to collect sales tax on the sale of tangible personal property at retail or the furnishing of services, as provided in CORS 29-2-105 [2.2]. You must also ensure that you are not absorbing the sales tax, as it is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this part 1 will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or if added that it or any part thereof will be refunded [1.2].
Conclusion
In summary, you can collect sales tax from customers in different states, but you need to ensure that you are complying with the tax laws of each state. In Colorado, you are required to collect sales tax on the sale of tangible personal property at retail or the furnishing of services, as provided in CORS 29-2-105. To collect sales tax in Colorado, you need to register for a sales tax license with the Colorado Department of Revenue and ensure that you are not absorbing the sales tax [1.2][2.2].
Source(s):
Jurisdiction
Colorado