January 24th, 2020
The Colorado Department of Revenue notified sales tax return spreadsheet filers of a new template required for returns periods beginning January 2020.
The Department also reminds taxpayers of a recent change in the law regarding the Colorado Vendor Service Fee Rate. The rate increased from .333% to .04%, but the fee is now capped at $1000. The contents of the email are as follows:
Colorado Sales Tax Changes for 2020
Because of recent sales tax law changes, the spreadsheet used to file your tax has changed. If your business does not file with Colorado by spreadsheet upload, you can still take note of the state service fee changes and other changes noted below.
Spreadsheet Changes
Due to the law changes you will not be able to use your old spreadsheet to file sales tax starting with January 2020 taxes. A new January-June 2020 spreadsheet template for your use can be found at colorado.gov/tax by choosing Businesses on the toolbar, then selecting Sales and Use Tax, then Filing Information, then File Online, then Sales Tax Spreadsheet Filing page. The new template is in jurisdiction code order. You only need to add the location numbers in column A for the spreadsheet to be ready. To help you, a procedure to automate adding the location numbers is attached to this email (See link below), or you can still manually add the location account numbers. You are able to hide rows you don’t need by highlighting those rows, then right click and select Hide.
Procedure for Adding Location Account Numbers to a Sales Tax Return Spreadsheet 1-24-20
Note: If you have trouble adding the location numbers or when you upload, send us an email with your Colorado account number and we will help you. If you are already an approved spreadsheet filer you are not required to get a new approval, but we will review your new spreadsheet if you wish to send it to us.
State Service Fee Changes
The service fee allowed on state sales tax has increased from a rate of .0333 to .04. A new law limits the total amount of state service fee for all locations filed to $1000. If the $1000 limit is exceeded, the excess must be added to your payment for that return. The new spreadsheet template has the .04 rate and a tab for Service Fee that does all the calculations for you.
Other Changes
Out of taxing area sales are now only deducted when a purchase is shipped out of Colorado. Out of city or out of county sales can no longer be deducted separately, only purchases shipped out of state. Use tax can no longer be reported on the sales tax return. You can file use tax on Revenue Online or by submitting paper form DR 0252.
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