SALT Report 3203 – The Colorado Department of Revenue recently revised Colorado FYI Sales 1 (12/1/13) addressing circumstances where vendors must determine whether a customer may purchase taxable goods without paying sales tax. The following circumstances are covered in detail:
- Resales
- Charitable Organizations
- Governmental Agencies
- Direct Pay Permits
Documentation (i.e. valid license numbers, exemption certificates) is required to be secured by the seller. To the extent sufficient support is not available or good faith is questioned, the seller is advised to charge tax and refer the purchaser to the department to file a claim for refund.
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