The sales tax in Colorado is 2.9%. However, this is not the entire picture because Colorado imposes a home rule system where municipalities can set their own tax rates and due to this the sales tax rate in Colorado increases up to 11.2%. If your business incurs sales tax nexus in Colorado, it is important to collect and remit Colorado state sales tax. There are different ways to establish Nexus covering physical presence or economic activity within the state. Therefore, the collection of sales tax is applicable regardless of whether the sale is made within Colorado or delivered to the customer’s place in Colorado. To help you out with understanding the various facets of sales tax Colorado Tax 365 brings to you a convenient online platform to file your tax seamlessly and keep your business compliant with tax regulations.

However, it should be noted that not all services are taxable in Colorado. Only the services that involve the transactions of tangible property are subjected to sales tax. Let’s take a look at a few exemptions of that are not covered by sales tax Colorado-

• Telecommunication services
• Furnishing rooms and accommodations
• Information and software services

Once businesses collect sales tax from customers, they need to file sales tax returns and remit it to the Colorado Department of Revenue. You can wish to file taxes monthly, quarterly or annually depending on the sales volume. To complete the entire process of tax filing tax 365 can help you greatly. From filing your taxes to keep updated with the latest Colorado sales tax rates by zip code, we cover everything to keep you compliant with Tax protocols.

How can Tax 365 help your business to stay compliant with sales tax Colorado?

• Real-time sales tax updates

We will always keep you updated with the latest changes in Colorado sales tax by county. The system monitors the changes in tax rates as well as regulations, helping your business to stay compliant without facing any kind of penalty.

• Automate tax calculations

Tax 365 makes sure that sales tax calculations are done correctly by applying the accurate Colorado sales tax rate. This eliminates human errors and makes sure that your business charges the right amount of tax for every transaction.

• Simplify e-tax filing

We help in streamlining the process of filing sales tax in Colorado by tracking sales tax collections, making it easier to file tax online and remit payments on time.