Colorado Offers Grace Period to Out-of-State Retailers

November 21, 2018 Alex Samuel

The Colorado Department of Revenue has updated their guidance for out-of-state retailers regarding the new destination sourcing regulations that will go into effect on December 1, 2018. The Department of Revenue is offering a grace period to out-of-state retailers through March 31, 2019 to comply with the new destination sourcing rules. Previously, this grace period was only available to in-state retailers. The updated guidance indicates that out-of-state retailers will be automatically granted a waiver from compliance with the destination-sourcing changes. Retailers that do not collect sales tax during the grace period must still comply with Colorado’s reporting statute (C.R.S. § 39-21-112(3.5)) which requires non-collecting retailers to provide certain notices to Colorado purchasers as well as the Department of Revenue. The Department has indicated that the reporting requirements for retailers that do not collect tax during the grace period will be strictly enforced.

To see the published guidance click here.

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About the Author

Alex Samuel is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos' Regulatory Analysis function, Alex focuses on enterprise sales tax issues arising in various domestic and international jurisdictions. Prior to Sovos, Alex worked as an attorney at New Hampshire Legal Assistance. Alex is a member of the New Hampshire and Massachusetts Bars, earned his B.S. from the University of Minnesota and his J.D./LL.M from the University of New Hampshire School of Law.

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