Colorado doesn’t issue a specific “resale certificate". You can just use your license number. Unlike some states, Colorado sellers can accept out-of-state resale certificates. The buyer who buys products for resale need not have a Colorado sales tax license to purchase tax exempt items from a Colorado seller. The certificate is a multi-jurisdiction one. If doing business in other states, include them. In most states, including Colorado, a seller’s permit and resale certificates for each vendor are needed.
To get a resale certificate, apply for a Colorado Sales Tax Registration. This gives a business a Colorado sales tax number. With that, you can issue a resale certificate. Complete the tax exemption form using the Sales Tax ID number. Then present a certificate copy to suppliers when buying items for resale.
Suppliers may refuse invalid certificates, making them responsible for sales tax. A resale certificate gives a retailer the right to buy items tax-free. These must be resold later. Sales tax applies on the final sale. For example, if a retailer buys more monitors from a wholesaler, it can provide a valid resale certificate to avoid paying sales tax. The retailer collects sales tax when selling the monitors to customers. In Colorado, this right is per Title 39, Article 26 of the Colorado Revised Statutes (C.R.S.).
Verification of Resale Certificate in Colorado
How do I verify my resale certificate in Colorado? You can use your license number as your resale certificate. Colorado sellers can accept out-of-state resale certificates. Buyers purchasing for resale need not have a Colorado sales tax license to buy tax exempt items from Colorado sellers. The certificate is multi-jurisdictional. Include other states where you do business.
In most states, including Colorado, sellers need a permit and resale certificates for each vendor. The seller’s permit identifies you to Colorado as a sales tax collector. Selling goods requires a permit, even for some service providers collecting sales tax. The resale certificate applies to items bought for resale, or to manufacture something.
To get a resale certificate, apply for a Colorado Sales Tax Registration. This provides a sales tax number. With it, issue a resale certificate. Complete the tax exemption form using the Sales Tax ID number. Present a certificate copy to suppliers when buying items for resale.
Suppliers may refuse invalid certificates, becoming responsible for sales tax. A resale certificate allows buying items tax-free, which must be resold later. Sales tax applies on the final sale. For example, a retailer can provide a valid resale certificate to a wholesaler to avoid paying sales tax on monitors. The retailer then collects sales tax when selling the monitors to customers. This right is per Title 39, Article 26 of the Colorado Revised Statutes.
Obtaining Resale Certificate in Colorado
Some states require resellers to have a license. Colorado requires a resale certificate or license. Get it online through the Online Tax Registration Application. Or fill out the Colorado Sales and Use Tax Permit application, then mail it. Colorado charges $16 for a reseller permit.
To obtain a resale certificate in Colorado, visit the Department of Revenue website. The certificate is multi-jurisdictional. List all states where you make sales. In Colorado, obtaining it is free. Present it to vendors. Keep a copy for records. Most Colorado resale certificates need renewal every two years and are void without an active sales tax permit.
To get a resale certificate in Colorado, submit a Sales Tax Registration application. This provides a sales tax number. A blanket certificate in Colorado does not expire unless revoked in writing. Rules are in Idaho Admin. Rules 35.01.02.128.
Eligible Colorado Reseller Certificate Purchases
Eligible Colorado reseller certificate purchases include:
- Business/commercial equipment for manufacturing tangible personal property.
- Raw materials like electricity/gas used in manufacturing tangible personal property.