DOR Taxation web site

Internet

Purchaser
If you are in Colorado and purchase goods over the Internet, you will owe sales tax on the purchase if buying from a seller that is also located in Colorado. Colorado vendors are required to charge sales tax even when sales are made over the Internet. If you are buying from a vendor not located in Colorado, you will probably not pay sales tax to the seller, but you must pay use tax directly to the State of Colorado. If you are purchasing through the Internet within the Denver area you will also owe the special district tax.

 

Use tax is paid on a Consumer Use Tax Return (DR 0252).

 

Seller
A Web site that sells tangible personal property collects tax in the same manner as a mail order business that sends catalogs to customers to place phone or mail orders. If the seller and the customer are both located in the same taxing jurisdiction, then the seller must collect all applicable state and local sales taxes.

 

For example, if you and the customer ordering from you are both located in Colorado, you must charge Colorado state sales tax. If you and the customer are both located in Estes Park, you must charge Colorado state sales tax in addition to any county and city tax for Estes Park that may apply. This example assumes you have no physical presence outside of your local jurisdiction. If you deliver items yourself or if you employ sales people to sell or advertise your product in other jurisdictions, we advise you to seek the assistance of a tax professional to help you keep track of the various tax rates and tax filing requirements in each jurisdiction. 

 

For further information on determining when to collect local taxes on shipped sales, see Publication FYI Sales 62, Guidelines for Determining When to Collect State-Collected Local Sales Tax.