This page contains information for businesses who do not have a physical location in Colorado, but are doing business in Colorado.
Doing Business in Colorado
In general, a retailer is doing business in Colorado if the retailer sells, leases, or delivers tangible personal property or taxable services in Colorado or engages in any activity in Colorado in connection with the selling, leasing, or delivering of tangible personal property or taxable services for use, storage, distribution, or consumption in Colorado.
A retailer may be doing business in Colorado even if that retailer maintains no physical location in the state, but not if the retailer meets the small retailer exception described below. A retailer is doing business in Colorado if the retailer solicits business and receives orders from Colorado residents by any means whatsoever. Solicitation may be done by any one of the following:
- Direct representatives, indirect representatives, or manufacturers' agents
- Distribution of catalogues or other advertising
- Use of any communication media
- Use of the newspaper, radio, or television advertising media.
Colorado Sales Threshold
Annual Sales Under $100,000
Any retailer who does not maintain a physical location in Colorado is exempted from state sales tax licensing and collection requirements if the retail sales of tangible personal property, commodities, and/or services made annually by the retailer into Colorado in both the current and previous calendar years are less than $100,000. However, they must also notify customers of their obligation to remit use tax.
Non-collecting retailers must do all of the following:
- Provide a Transactional Notice to all Colorado purchasers
- Provide an Annual Purchase Summary to all Colorado purchasers by January 31st each year
- Provide an Annual Customer Information Report to the Department by March 1st of each year
Non-collecting retailers are encouraged to review Department Rule 39-21-112(3.5) regarding notice and reporting requirements. The annual customer information report can be submitted via the Revenue Online system under the "Sales and Use Tax" section. For additional information, see the Colorado Sales Tax Guide.
Annual Sales Over $100,000
Retailers must begin collecting Colorado sales tax if their retail sales into Colorado during the current calendar year exceed $100,000. The retailer must apply for and obtain a sales tax license and begin collecting Colorado sales tax by the first day of the first month commencing at least 90 days after the retailer's aggregate Colorado sales in the current year exceed $100,000. If the retailer's Colorado sales in the previous year exceed $100,000, the retailer is subject to Colorado sales tax licensing and collection requirements for the entire calendar year.
If a retailer fails to obtain a sales tax license and begin collecting sales tax within the prescribed period of time, the retailer is nonetheless liable for all applicable state and state-administered sales taxes for any subsequent sale made into Colorado. For additional information, see the Colorado Sales Tax Guide.