Colorado Resale Certificate and Sales Tax License
Colorado doesn’t issue a specific “resale certificate”. You can just use your license number. Colorado can accept out-of-state resale certificates.
The Colorado certificate is a multi-jurisdiction certificate. In Colorado, resale certificates do not expire. Your registration permit does.
Relevance of Resale Certificate
A resale certificate allows exempt business purchases.
Suppliers charge the tax rate where delivered unless presented a valid Resale Certificate. Businesses can present resale certificates to suppliers for tax free purchases delivered to Colorado.
Colorado Sales Tax and Resale Certificate
Is a sales tax license the same as a resale certificate in Colorado?
The Colorado sales tax license may be called a reseller’s license or vendor’s license. It is for state and state sales tax. Colorado sales tax licenses expire biennially.
Tax Exemption and Use Tax Rate
The state consumer use tax rate is the same as the sales tax rate: 2.9%. Use tax is also collected by some local governments and special districts.
However, if you are a drop-shipper, you are not required to register with the state for a resale certificate.
You cannot use your resale certificate to buy items you’ll use in the normal course of business, such as office supplies. A resale certificate exempts registered businesses from sales tax on items purchased for resale, as the customer pays the sales tax.