Colorado joined the list of states in 2019 that mandate sales tax collection and submission on behalf of third-party sellers through marketplace facilitators. This implies that if you are a vendor who sells your goods in Colorado on an online marketplace like Amazon, Etsy, or eBay, the marketplace is in charge of gathering and remitting the sales tax to the state.
In Colorado, a sales tax license or a seller’s permit must be obtained if you plan to offer products or services within the state. Both in-state and out-of-state vendors who sell to Colorado customers are subject to this. However, you do not require a separate sales tax license or permit if you are a third-party seller using an online marketplace. It is your responsibility to have the sales tax collected and sent on your behalf by the marketplace facilitator.
If you are selling in Colorado and utilizing Shopify to sell your goods, you must obtain a seller’s permit or a sales tax license. However, if you are a third-party seller using Shopify and you are selling in Colorado, the platform will gather and submit sales tax on your behalf. No further sales tax license or permit is required.
In states where it is necessary by law, Shopify does indeed collect sales tax. As a marketplace facilitator in Colorado, Shopify is in charge of collecting and remitting sales tax on behalf of independent vendors. This means that Shopify will automatically gather and submit sales tax on your behalf if you use the platform to sell your goods in Colorado.
In conclusion, if you are a vendor selling your goods in Colorado utilizing an online marketplace like Shopify, you do not require a sales tax license or permission. It is your responsibility to have the sales tax collected and sent on your behalf by the marketplace facilitator. In Colorado, Shopify is regarded as a marketplace facilitator and will gather and submit sales tax on behalf of independent sellers. For the purpose of ensuring compliance with all relevant laws, it is crucial to keep up with state sales tax rules and regulations.