If you have a business in Connecticut you generally must register with the Connecticut Department of Revenue Services. You must obtain a sales and use permit if you sell, lease or rent taxable goods, sell a taxable service or operate a hotel, motel or lodging house in Connecticut.
This requirement applies whether you operate your business as a sole proprietorship, partnership, corporation or other legal entity. And you are required to obtain a permit regardless of the number of sales or the amount of tax collected. If you have more than one place of business, you must obtain and display a permit in each location. Manufacturers, wholesalers and retailers in Connecticut are required to obtain a sales and use permit.
If you purchase an existing business, you cannot use the previous owner’s permit; you must obtain a new permit. In this case, you should also obtain a Tax Clearance Certificate to avoid being held liable for any sales and use taxes that may be owed by the previous owner of the business.
You are responsible for collecting the sales tax, filing sales tax returns and paying the sales tax to the Connecticut Department of Revenue Services. Your business is liable for the tax whether or not you collect it from customers.
If you sell at a flea market, craft show, antique show or other type of show or fair in Connecticut, you must obtain a sales and use tax permit, even if you are only selling for one day. The permit must be displayed in your booth or on your table.
You can register your business and apply for a sales and use tax permit online on the Taxpayer Service Center on the Connecticut Department of Revenue Services website. You could also apply in person at any of the Department of Revenue Services offices, or you can complete and mail Form REG-1, Business Taxes Registration Application. The one-time fee for a sales and use tax permit is $100. The permit is valid for five years and is automatically renewed and mailed to you at no cost.
If you resell goods on the Internet and are located in Connecticut, you must obtain a sales and use tax permit. You would charge Connecticut sales tax on any taxable goods that are shipped to a Connecticut address. Orders shipped to an address outside of Connecticut are not subject to Connecticut sales tax.
A sales tax return must be filed according to the frequency determined by the Connecticut Department of Revenue Services. You may initially be set up to file on a quarterly basis. Once you start filing sales tax returns, your frequency may be changed. If your sales tax liability for the prior 12-month period is less than $1,000 you may be notified that you are being changed to an annual filing status. And if your sales tax liability is more than $4,000 for the prior year, you may be changed to a monthly filing status.
You can file sales tax returns online in the Taxpayer Service Center or send in paper returns using Form OS-114. You can find instructions on Form O-88, Instructions for Form OS-114 Sales and Use Tax Return. You must file a sales tax return even if you had no taxable sales for the applicable period.
Form OS-114, Sales and Use Tax Return, Connecticut Department of Revenue Services
Form REG-1, Business Taxes Registration Application, Connecticut Department of Revenue Services
Managing Sales Tax Information, Connecticut Department of Revenue Services
O-88, Instructions for Form OS-114 Sales and Use Tax Return, Connecticut Department of Revenue Services
Registration Information, Connecticut Department of Revenue Services
Taxpayer Service Center, Connecticut Department of Revenue Services