How to Get a Reseller’s Permit in Colorado?

How do I get a reseller’s permit in Colorado?
To apply for this certificate with Colorado, use the Application for Sales Tax Exemption for Colorado Organization (DR 0715). No fee is required for this exemption certificate and it does not expire. All valid non-profit state exemption certificates start with the numbers 98 or 098.
Read more on tax.colorado.gov

It’s possible that you’ll need to obtain a reseller’s licence, commonly known as a sales tax license, if you intend to sell goods in Colorado. You can buy items at wholesale prices without paying sales tax if you have a reseller’s permit, and you can charge customers sales tax when you sell the items at retail. What you should know about obtaining a reseller’s permit in Colorado is provided below. Is There a Resale Certificate in Colorado?

In Colorado, a sales tax license, which also functions as a reseller’s permission, is issued instead of a resale certificate. If you want to sell tangible personal property or taxable services in Colorado, you must submit an application for a sales tax license with the Colorado Department of Revenue. If you intend to conduct business at gatherings like trade exhibits, flea markets, or craft fairs, you must also obtain a sales tax license. Do I Need a Seller’s Permit in Colorado to Sell Online?

Yes, even if you sell online, you need a seller’s permit in Colorado if you offer tangible personal property or taxable services. All purchases made to customers in Colorado, including those made online, are subject to sales tax collection. Sales tax may be collected and sent on your behalf if you sell on a marketplace like Amazon or Etsy. However, the Colorado Department of Revenue will still require you to obtain a sales tax license. How Do I Obtain a Resale Certificate? You must submit an application for a sales tax license with the Colorado Department of Revenue in order to get a resale certificate. The Colorado Sales Tax Application (Form DR 0594) can be used to submit an application by mail or online at the Revenue Online website. In addition to your business name, address, and phone number, you must also include your federal tax ID number and the kind of business you run. You can also be asked for details regarding your sales volume, the kinds of goods or services you sell, and the places you want to sell them.

Does Colorado Accept Certificates of Resale from Other States?

No, Colorado does not recognize certificates of out-of-state sales. To offer goods or services in Colorado as an out-of-state vendor, you need to apply for a sales tax license there. But if you’re a seller in Colorado and you sell to people from other states, you can accept their resale certificates if they have legitimate documents from their home state. In that instance, you are exempt from having to charge sales tax on the purchase.

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