DOR Taxation web site


Rendering services is not subject to sales tax in Colorado.  Examples of those rendering a service are lawyers, CPAs, technical support (no exchange of parts) or hair salons (excluding products). The service charge must be itemized separately on your invoice or bill to show that the service is nontaxable. If the labor is not separated on the bill, then the total purchase is taxable.


There are two exceptions:


  • Labor on preparing or making an item of tangible personal property for sale is not exempt. Labor is incorporated into the price of the item.
  • If you are customizing tangible personal property after a sale, labor will be exempt if:
    1. the title and possession of the property have passed to the buyer, and
    2. the labor provider is not liable for the cost of the property sold if the labor or customization is unsuccessful.


The following services are TAXABLE:



Please see  Publication FYI Sales 52, Special Regulation: Service Enterprises for more information.