The Colorado Department of Revenue reminds Colorado sales tax filers that EFT (electronic fund transfers) payments for sales tax are different than EFT payments for withholding tax.
According to the DOR, “A sales tax return must be filed even when the sales tax is paid through EFT because multiple tax jurisdictions are involved and the correct tax distribution must be reported to the Department of Revenue.”
Sales tax management in Colorado is Gordian, with more than 300 individual jurisdictions able to levy and collect local sales tax under Home Rule. Businesses can simplify transaction tax filing and increase compliance by implementing automated sales tax Software-as-a-Service. Learn how it works.
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
Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.