Asked in Tax Law for Colorado

Q: Do International Business's pay state taxes in colorado if the vendor supplied to an international company not located

Printed goods supplied, invoiced paid by an international company located outside the USA. Goods delivered to another company located in Colorado. Does the International Company have to pay state tax for the goods?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
  • Tax Law Lawyer
  • Englewood, CO
  • Licensed in Colorado

A: It's going to depend on the goods and services provided. Is the company paying for a service or a good? Services are not subject to sales tax, goods are. If I have my brakes changed am I buying brakes, the installation service, or both? The first step would be an analysis of what was purchased and how does CO treat that purchase for sales tax.

For income tax purposes if the international company is buying from you and selling to a 3d party that you then deliver the stuff to, it depends. We would need to know a lot more about the company and their operations, employees, sales, and assets in the US and in CO. If they have tax nexus they would be subject to income tax.

You're likely better off seeking a professional regarding this issue. Someone you can share all the details with. Because the answer is the most legal of all answers: It depends.

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