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Colorado Electronic Sales Tax Payment Updates


The Colorado Department of Revenue released updated rules for making sales tax payments by Electronic Funds Transfer or EFT. 

Colorado retailers who collect over $75,000 in Colorado State sales tax per year must remit state and local taxes by Electronic Funds Transfer (EFT).

Registering For EFT

Retailers can register in one of two ways:

*The Department provides further instructions on paper filing:

If registering by paper, the tax type to enter is Sales and the tax type code is 042. If the business already has an EFT account for paying other types of taxes, the checkboxes for Modify Account and Add Taxes should be marked. The applicant must complete Section 1 and/or Section 2 of the DR 5785 to indicate whether payments will be made by ACH debit or ACH credit.

Making Payment via EFT

Retailers that have an EFT account can pay either online or by phone, with  the payment amount, EFT account number, tax type code and PIN.

If a business submits a payment after the due date, it will be subject to a late payment penalty of 10 percent.

Even with EFT, sales tax returns and remittance can be difficult to submit on time. Learn more about automating your sales tax payments and returns so you can be on time, every time.

 


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.