Colorado Sales Tax Certificate

	Benefits Avoid paying Colorado  sales tax on qualifying purchases. Wholesaler registration for greater discounts on products. Compliance with  Colorado State Law.

    add page to favorites

	Who needs one? If you run any type of business that sells a product, you are required by Colorado law to have a Colorado Sales Tax Resale Number.

3 Reasons for Obtaining a State Sales Tax Certificate are listed below.

1. Colorado law requires virtually every type of business to obtain a Colorado Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales.
   • Colorado Sales Tax Resale Certificate Example: If you live in Colorado and you sell or ship something to someone else in Colorado, then you must collect and pay sales tax to the State of Colorado. But, if you sell the same item to someone outside the State of Colorado, you need not charge sales tax, but must report the exempt tax sale to the State of Colorado.
     
2. You are able to purchase items without paying Colorado sales tax. When you buy an item that you plan to resell, you can purchase it without paying Colorado sales tax. Items must be for resale or qualified business use.
   • Colorado Sales Tax Resale Certificate Example: If you go to a wholesaler and buy a computer you plan to sell [like eBay], you  may purchase the item without paying state sales tax.
3. Wholesale companies in Colorado require a sales tax resale certificate. Virtually all legitimate wholesale companies will ask for a copy of your resale certificate before they will sell to you at wholesale prices. Also, wholesale companies, require a Colorado state sales tax certificate number to open a commercial account.
   • Colorado Sales Tax Resale Certificate Example: Wholesale trade shows and merchandise marts require a copy before letting you participate.