Sales Tax Deductions

  • Service sales (sales that were exclusively for services, not tangible personal product)
  • Wholesale sales, including wholesale sales of ingredients and component parts
  • Sales to governmental agencies, religious or charitable organizations (these sales should be documented and records kept)
  • Sales of gasoline, dyed diesel, and other exempt fuels
  • Sales of exempt drugs and medical devices
  • Bad debts charged-off, returned goods, trade discounts and allowances where tax as paid (cash discounts are not allowed)
  • Cost of utilities, excluding tax (restaurants only)
  • Exempt agricultural sales, not including farm and dairy equipment
  • Wholesale sales, including wholesale sales of ingredients and component parts
  • Sales made to nonresidents or sourced to locations outside of Colorado
  • Fair market value of property received in exchange and held for resale
  • Sales of computer software that is not taxable
When you file through the Revenue Online service, you will be prompted to provide the deductions information and it will become part of the e-filed return.
 
If the return is filed on paper, the total from the Deductions schedule must be reported on the sales tax return and the Deductions schedule must also be submitted with the sales tax return.