Sales and Use Tax

Sales and Use tax...

If you make any retail sales, you will need to obtain a sales tax license from the Colorado Department of Revenue. A deposit in addition to the license fee is collected with the application. (The deposit will be refunded when you have collected and submitted an equal or greater amount in sales tax.) Colorado collects the tax for RTD, a few cities and many counties. If you are located in a city that collects it’s own sales tax, a "home rule" city, you are required to obtain an additional license from your city. Most cities in and around Denver are "home rule" cities.

Sales tax rates vary by location: the state of Colorado, areas within the RTD district, counties and cities set their own rate and they vary significantly.

Sales tax returns are prepared and the sales tax paid either monthly, quarterly or annually, depending on the amount of sales tax collected. Colorado and all city returns are due on the 20^th day of the month following the taxing period.

Any non-taxed equipment or supplies used by your business are subject to use tax. The rates for use tax are the same as sales tax, and it is reported on the same sales tax return. Any equipment that you acquire as part of a business purchase is subject to use tax.

If we do your bookkeeping, we will prepare these returns.

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