The Colorado Department of Revenue issued a Notice to Retailers that the Geographic Information System (GIF) is now online and available to assist retailers with taxes owed during transition to destination sourcing by July 1.
The Colorado Department of Revenue, Taxation Division, issued a Notice to Retailers that the Geographic Information System (GIS) is now available. Pursuant to sections 39-26-104(3)(c)(III)(B) and 39-26-105.2(2), C.R.S., the GIS is for retailers to use in determining the jurisdictions to which tax is owed and to calculate appropriate sales and use tax rates for individual addresses.
The GIS is part of the new Sales and Use Tax System (SUTS) (see SUTS updates) and will assist retailers in making the transition from origin sourcing to destination sourcing by July 1, 2021.
According to the Notice, retailers must take the following actions by July 1, 2021:
- Retailers that were sourcing all sales to their business location pursuant to section 39-26-104(3)(c), C.R.S., must begin applying the “destination sourcing” rules set forth in section 39-26-104(3)(a) and (b), C.R.S.
- Retailers that were utilizing address databases certified by the Department of Revenue pursuant to section 39-26-105.3, C.R.S., must ensure that the database provider is using the most recent information provided by SUTS in order to be held harmless under the terms of section 39-26-105.2(3), C.R.S.
Retailers currently using origin sourcing can find additional resources for transitioning to destination sourcing at the Colorado DOR website, including:
- GIS Help Page
- Transition to Destination Sourcing Information
- SUTS Information Page
- SUTS Help Page
- SUTS Frequently Asked Questions
- SUTS Participating Home Rule & State-Administered Jurisdictions
The State encourages all retailers to file sales tax returns for the state, state-administered local jurisdictions, and participating home-rule cities using SUTS but be aware: registering without remediating existing exposure can be costly (see Assess Risk Before Signing On). SUTS is a one-stop portal that will allow taxpayers to do all manner of tasks related to collecting and remitting sales and use tax in an easy, automated, and seamless fashion. The system has the following capabilities:
- Accurate address location capability
- A uniform remittance form
- A single point of remittance
- A taxability and exemption matrix
- The ability to calculate tax rates on items with differing tax rates in the same jurisdiction
- A record of the history of any changes
Access SUTS through the Colorado DOR website.
We’re here to help you reduce risk in making the move to SUTS and destination sourcing. Reach out to us for a free consultation.