Denver sales tax is due the 20th of the month following the period in which the liability was incurred. The period is determined by the filing frequency.
The filing frequency is determined by the average amount of use tax due each month. If no payment history exists, an industry standard is used.
NOTE: Bars, liquor stores, restaurants, caterers and street vendors are required to file monthly returns, irrespective of sales tax volume.
|Frequency||Average Due Each Month|
|Monthly||$300.00 or more|
|Quarterly||$15.01 to $299.99|
|Annual||$15.00 or less|
You can, if the average amount of Denver sales tax collected and/or use tax due is less than $15/month.
Yes. Tax is due for the period in which the sale occurs, even if full payment was not received in that period (credit sales, lay-away, etc.)
Yes (VISA & MasterCard only).
You need to complete an amended Denver sales tax return when an error is discovered on a previously filed return.
A 15% penalty is charged on the amount of tax that is paid late, with a minimum penalty of $25.00.
NOTE: The minimum penalty is due on all Denver tax returns that are filed late, even if no tax is due.
Interest, at the rate of 1% each month or a fraction thereof, is charged on the amount of the tax that is paid late, calculated from the time the return was due to the date that it is paid.
How do I calculate the penalty and interest due on a Denver sales tax return filed late?
Penalty: Multiply the total tax due by 0.15. If the answer is zero or less than $25.00, pay the minimum penalty of $25.00.
Interest: Multiply the total tax due by 0.01. Multiply that answer by the number of months (or fraction of a month) between the date the return was due and the date payment will be made. Payment date is determined by the postmark date, if mailed.
Example: If a return was due on April 20, but payment was not made until May 23, 2% interest would be due (one whole month, and one fraction of a month).
The $25.00 minimum penalty, charged for failure to file a return, even if no tax is due.
The collection process will begin, starting with the issuance of an estimated assessment, based either on the average tax you previously reported or on a standard for your industry.
NOTE: Even if no tax is due, the minimum $25.00 penalty will be charged.