Sales Tax Changes-What Businesses Need to Know


Destination sourcing

“Sales tax collection for the state of Colorado has changed with the passage of HB19-1240 to account for the shift toward online sales. As of June 1, 2019, sales tax will be calculated based on the buyer’s address when the taxable product or service is delivered to the consumer. This is called destination sourcing.”

“Destination sourcing is also used when a product or service has a lease/rental agreement with periodic recurring payments. Businesses will now be required to collect and remit sales tax for all retail sales to Colorado consumers, regardless of the physical location for the business. Exceptions to the new sales tax law may apply to small businesses and marketplace sellers. Information regarding exceptions to the new sales tax can be found via The Colorado Department of Revenue website. For a complete list of location/jurisdiction codes for sales tax filing, see form DR0800.”  To sign up for Colorado Sales & Use tax news and updates click HERE

Webinar: Colorado Sales Tax Changes- What you need to know

(Source: CDOR https://www.colorado.gov/pacific/revenue)