Is Amazon Collecting Sales Tax for Colorado?

Colorado started requiring out-of-state merchants to gather and send sales tax on transactions made by Colorado citizens in 2017. Since that time, Amazon has started collecting sales tax from customers in Colorado. This means that if you live in Colorado and order things from Amazon, sales tax will be charged to your order amount at the time of checkout.

But what about merchants who market their goods on Amazon? To sell online, do they require a seller’s license? Yes, it is the answer. In Colorado, you need a seller’s permission if you sell products online, whether through Amazon or another marketplace. You are able to gather and send sales tax on the goods you sell thanks to this permit. Penalties and fines may apply if a seller’s permission is not obtained.

Similar to this, if you sell on Etsy, you must also collect and remit sales tax from your customers as well as record your income to the state of Colorado. No matter what platform they sell their products on, this holds true for all online vendors.

You will also need a seller’s permit in Colorado if you sell on Shopify. Although Shopify gives sellers tools to collect and submit sales tax, it is ultimately the seller’s obligation to make sure they are in compliance with state regulations.

A Colorado sales tax exemption certificate is what, exactly? Certain groups, including non-profits and governmental bodies, are permitted to purchase items without paying sales tax thanks to this certificate. It is crucial to remember that not all organizations qualify for this exemption, and that the Colorado Department of Revenue must be contacted in order to get the certificate.

In conclusion, merchants who use online marketplaces like Etsy and Shopify are obliged to get a seller’s permit, collect, and remit sales tax on their sales. Amazon is also collecting sales tax for Colorado residents. In order to make tax-exempt purchases, certain qualified organizations can also obtain a Colorado sales tax exemption certificate. All online merchants should be aware of their tax responsibilities and make sure they are following all applicable state regulations.