Colorado resale certificate and sales tax for resellers
A summary of what the sources listed on this page say about Colorado: its permit and resale certificate, buying inventory for resale, and refunds of sales tax paid on inventory. General information only.
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Last reviewed
Every fact on this page comes from the sources listed below, as they read on the review date. Where a source did not say something, we leave it out. Sources can change after that date.
Colorado quick facts
What the sources listed below say. Rules change, and how they apply depends on the facts of each case.
- State base sales tax rate
- 2.90%[2]
- Resale certificate
- Form DR 5002 (Declaration of Wholesale or Entity Sales Tax Exemption); it replaced DR 0563[2]
- Certificate expiry (as listed)
- No expiry listed in the source[2]
- Permit or registration
- Sales Tax License[1]
- Cost of the permit
- $16 per location, prorated by issue date, plus a $50 deposit that is refunded later[2]
- Where to apply
- State application page[1]
- Certificate form
- State certificate form[34]
Keep each purchase receipt linked to the items it covers. Get the app
What the state says about its permit and resale certificate
The state calls the registration associated with buying for resale and collecting tax a Sales Tax License.[1] The state says the cost is: $16 per location, prorated by issue date, plus a $50 deposit that is refunded later.[2] State application page.[1]
The resale certificate the state lists is Form DR 5002 (Declaration of Wholesale or Entity Sales Tax Exemption); it replaced DR 0563. The source cited lists no expiry.[2] The state's certificate form asks for a permit or registration number.[4] State certificate form.[34]
What the state says about buying inventory for resale
Multistate certificates
Out-of-state buyers
Yes. A seller may inspect and keep a copy of a license or certificate from another state's tax agency, or accept DR 5002 or the MTC resale certificate from an out-of-state purchaser.[2]
Other points the sources mention
- Colorado's current form is DR 5002, Declaration of Wholesale or Entity Sales Tax Exemption. The department's retired forms page says DR 0563 was consolidated into DR 5002. The department says a purchaser gives it to the seller and does not send it to the department.[35]
- Colorado says a retailer must verify that a buyer's sales tax license or exemption certificate is current and valid at the time of the sale, online through Revenue Online or by inspecting a physical copy. Retailers bear the burden of proof for any sale where they did not collect tax.[2]
- The MTC certificate cannot be used in Colorado to claim a resale exemption for a taxable service, and self-collecting home-rule cities may not accept it.[7]
- Anyone making sales at a flea market in Colorado is a retailer and is subject to licensing, collection and filing requirements for each market. Colorado says that when an item bought tax-free for resale is later withdrawn from inventory for the owner's own use, use tax is due on it.[2]
What the state says about refunds of sales tax paid on inventory
Some states let a purchaser request a refund of sales tax paid on items bought for resale, and some direct the request to the seller. Whether and how that applies depends on the facts of each purchase. This section reports what the sources say for Colorado. According to the state's information, a purchaser who paid sales tax to a seller is pointed to the seller first. The state describes a purchaser filing directly only with a seller-signed assignment or waiver, or proof that the seller refused.[8]
- Who files, per the state
- Seller first, per the state[8]
- Refund form named by the state
- Form DR 0137B (Claim for Refund of Tax Paid to Vendors)[8]
- How the state says to submit
- The Dept. of Revenue describes asking the vendor first, then filing DR 0137B with the Dept. of Revenue[8]
- Time limit the state describes
- Generally 3 years[8]
The Department lists DR 0137 for sellers and DR 0137B for tax paid in error to a vendor. Its Sales Tax Guide says the Department does not administer the sales taxes of certain home-rule cities, which administer their own.[8]
Illustration: the Colorado state base rate applied to an amount you enter
Enter an amount to see an illustration.
Illustration only. It applies the 2.90% state base rate to the amount entered, and assumes that amount is before tax. It leaves out local taxes, exemptions and every other rule, which can change the result. It is an estimate for illustration, not a tax calculation or a prediction of any amount owed, deductible or refundable.
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Keep each purchase receipt linked to the items it covers
Strooply is an app for eBay resellers that identifies items from photos, shows live comps and sold-price estimates, drafts eBay listings for your review, and tracks costs and profit.
Receipt scanning, on Pro and Team plans, links each purchase receipt to the items it covers, with the tax shown on the receipt. It can misread prices, dates or line items.
Strooply is record-keeping software. It does not prepare or file tax returns, refund claims, or other filings, it is not a tax preparer, and its figures are estimates to check against your own records.
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Common questions and what the sources say
Do I need a sales tax license to sell on eBay in Colorado?
Colorado says a retailer who makes sales only through a marketplace may be exempt from licensing, collection and filing if the marketplace facilitator collects all applicable state and state-administered local sales taxes on the retailer's behalf. Otherwise a retailer must obtain a sales tax license before making sales.[2]
How do I get a resale certificate in Colorado?
Colorado's sales tax license is the document the department says other states may call a reseller's license or resale certificate. The department's DR 5002 documents a purchase for resale: the purchaser completes it, enters its sales tax license number, and marks Purchase for Resale, which means the item is planned for resale in an unaltered or unused state.[14]
Does a Colorado sales tax license expire?
The department says most Colorado sales tax license types are valid for a two-year period and expire at the end of each odd-numbered year. Renewing online through Revenue Online is the fastest method, and each physical location needs its own license.[16]
Does a Colorado license cover Denver and other home-rule cities?
No. The department says Colorado licenses cover only state and state-collected tax jurisdictions, and that home-rule cities have their own license requirements.[1]
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Where these facts come from
Each number in square brackets on this page matches an entry below. Check a source itself for its current wording.
- Colorado DOR: How to Apply for a Colorado Sales Tax License, tax.colorado.gov/how-to-apply-for-a-colorado-sales-tax-license
- Colorado DOR: Sales Tax Guide, tax.colorado.gov/sales-tax-guide
- Colorado DOR: DR 5002, Declaration of Wholesale or Entity Sales Tax Exemption, tax.colorado.gov/DR5002
- Colorado DOR: DR 5002 form and instructions (PDF), tax.colorado.gov/sites/tax/files/documents/DR5002_2023.pdf
- Colorado DOR: Retired Forms, tax.colorado.gov/retired-forms
- Colorado DOR: Renew Your Sales Tax License, tax.colorado.gov/renew-your-sales-tax-license
- Multistate Tax Commission: Uniform Sales & Use Tax Resale Certificate (Multijurisdiction), state notes, www.mtc.gov/wp-content/uploads/2023/01/Unif-Resale-Cert-revised-10-14-22.pdf
- Form DR 0137B (Claim for Refund of Tax Paid to Vendors), state refund form, tax.colorado.gov/DR0137B