Colorado Exemption Form PDF Details

Form DR 0563, the Colorado Sales Tax Exemption Certificate, is issued by the Colorado Department of Revenue. It allows qualifying buyers to purchase goods and services in Colorado without paying state sales tax. The certificate applies to both state and city-level sales tax in most cases.

The following types of businesses and organizations may use Form DR 0563:

To complete the form, provide your company name, address, and Colorado sales tax account number. List the registration or ID number for each city or state where you plan to make tax-exempt purchases. Enter this information for every jurisdiction where the exemption applies.

You must also describe what types of goods the exemption covers. State whether the items are purchased for resale, production, charitable use, or another qualifying purpose. Be specific. Vague or incomplete descriptions may cause a seller to reject your certificate.

If you later use any purchased goods for a taxable purpose, your business must report the use and pay the tax owed. This rule applies even if the original purchase was tax-exempt. Colorado law holds the buyer fully responsible for accurate reporting of any taxable use.

Sellers who receive this certificate must review it carefully before granting tax-exempt status. The certificate transfers tax liability to the buyer. An incomplete or fraudulent form does not release the seller from legal responsibility. Sellers should retain a copy of each certificate received for at least three years.

The exemption certificate does not expire automatically. Colorado recommends updating it when your business information changes. If your tax registration number changes, your exemption type changes, or your business relocates, issue an updated certificate to each of your suppliers.

Form DR 0563 must be completed accurately to comply with Colorado sales tax law. Errors, omissions, or false statements may result in back taxes, interest, and penalties for both the buyer and the seller.

QuestionAnswer
Form NameColorado Exemption Form
Form NumberDR 0563
Form Length2 pages
Issuing AuthorityColorado Department of Revenue
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namescolorado sales tax exemption, colorado resale certificate, form dr 0563, colorado tax exemption certificate, colorado tax exempt form, sales tax exemption certificate colorado, colorado exemption certificate

How to Edit Colorado Exemption Form Online for Free

What You Need Before You Start

Collect these details before opening Form DR 0563:

  • Your company name, full address, and Colorado sales tax account number
  • Your exemption category (wholesaler, retailer, manufacturer, charitable, or other)
  • Registration or ID numbers for each city or state where you claim exempt status
  • A description of the goods or services you are purchasing under the exemption

Follow these steps to complete the form online:

Step 1: Click the orange "Get Form Now" button to open the PDF editor in your browser.

Step 2: Fill in your company information at the top of the form. Select the exemption type that applies to your organization. Use the toolbar to type into fields, highlight content, or add your signature.

colorado resale certificate gaps to complete

Enter your registration or ID numbers for each city and state where you claim exempt status. Fill in one row per jurisdiction. Specify the exemption category for each location: resale, manufacturing, charitable, political subdivision, or other. If your exemption falls under a specific Colorado statute, write the statute number in the space provided.

colorado resale certificate fields to complete

Complete the certification section at the bottom of the form. Sign under penalty of perjury. Enter the date in MM/DD/YY format and write your job title.

step 3 to finishing colorado resale certificate

Step 3: Click "Done" when finished. Download the completed form to your device or send it directly by email.

Step 4: Save a signed copy for your own records. Give the original to your supplier before or at the time of purchase. We do not store or share your personal information.

Common Questions About Form DR 0563

How long does the exemption certificate stay valid?

There is no expiration date on Form DR 0563. You should issue a new certificate when your business information changes, such as a new address, a new tax registration number, or a change in exemption category. Suppliers may request an updated certificate at any time.

Do I need a separate form for each supplier?

Yes. You must provide a completed Form DR 0563 to each supplier from whom you plan to make tax-exempt purchases. Each supplier should keep a copy on file. One form cannot be shared across multiple vendors.

What happens if I use tax-exempt goods for a taxable purpose?

If you divert any goods from their exempt purpose, you must report the taxable use to the Colorado Department of Revenue and pay the applicable sales or use tax. This includes any applicable interest and penalties. Buyers are fully responsible for accurate reporting.

Related Colorado and Sales Tax Forms

You may also need these forms for Colorado and multi-state tax compliance:

Watch Colorado Exemption Form Video Instruction

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