Sales and Use Tax for MSP
We will be beginning a MSP (Managed Service Provider) in the state of Colorado. We don't intend to sell hardware or software to the clients - only manage their existing IT infrastructures. We are curious if we should move forward with obtaining a sales and use tax license for the revenue we collect?
Quick Answer:
In Colorado, sales tax generally applies to the sale of tangible personal property and certain specifically enumerated services. The state does not have a broad sales tax on services.
Based on your description, where you will
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
