A multichannel seller is a marketplace seller who also offers tangible personal property, commodities, or services for sale through other means; such as, their own store or on their own website.
For any sale made independently of a marketplace facilitator, a multichannel seller is subject to all of the same licensing, collection, remittance, filing, and recordkeeping requirements as any other retailer. A multichannel seller will generally be required to obtain a sales tax license, collect all applicable sales tax, and file sales tax returns with the Department.
Small Retailer Exception
A multichannel seller who has annual sales of less than $100,000 and does not maintain any place of business in Colorado directly, indirectly, or by a subsidiary is exempted from state sales tax licensing and collection requirements.
If the multichannel seller is located within the state of Colorado and has less than $100,000 in sales, they have a temporary exception to using destination sourcing to determine the amount of sales tax to collect and remit. Such sellers may source their sales to their business location and collect all applicable state-administered and special district taxes for their business's jurisdiction. This is called origin sourcing.
In determining exemption based on the $100,000 sales threshold, a multichannel seller should not include any marketplace sales that were facilitated by a marketplace facilitator. For more information, visit the Small Business Exception web page.