Related Information

Question: Do I pay sales tax on point of purchase or point of delivery?
A taxable sale occurs where there is a transfer of title or possession. For many sales, transfers of title and possession occur at the same point in time and place. The most common example is where the purchaser pays for and takes merchandise with them in an over-the-counter transaction. Title and possession were transferred at the store, and the sales tax is due at the time of sale at the rate in effect for the store's location.

If the merchandise is paid for at the store, but the seller as a condition of the sale is required to deliver the merchandise to another destination, tax is due for each jurisdiction that is in common between the seller and the delivery point. The tax rate charged will be the tax due at the point of destination. In other words, delivery by the seller was a condition of the sale, meaning that title did not pass until the property was delivered.

Whether a mail order sale is subject to sales tax depends upon whether the seller is doing business in Colorado and where title and possession pass.

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