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How to Get a Sales Tax Permit in Connecticut

Most business owners in Connecticut need to register for a sales tax permit. Here’s the information you need.

What is a sales tax permit?

A sales tax permit (sometimes called a “seller’s permit” or “sales tax license”) is a license that allows a business owner to make sales in a certain state or jurisdiction. The Connecticut sales tax permit allows the Department of Revenue to collect sales tax from Connecticut businesses.

Learn more about Obtaining a Seller’s Permit.

Do I need a sales tax permit in Connecticut?

According to the Connecticut Department of Revenue Services, you must obtain a sales tax permit (called a Sale and Use Tax Permit in Connecticut) before doing the following in Connecticut:

  • Selling, renting, or leasing goods
  • Selling a taxable service
  • Operating a hotel, motel, or lodging service

You do not need a sales tax permit if you make an isolated sale—for example, if you sell your bike to a guy on Craigslist. The Department of Revenue also states that if you purchase a business from someone else, you must obtain a new sales tax permit, rather than using the previous owner’s permit.

How do I get a sales tax permit in CT?

Connecticut requires business owners to apply for a sales tax permit online, using the myconneCT online portal. There is a $100 fee, which you must make pay directly from a checking or savings account. Credit cards are not accepted. Here’s what you will need to register:

  • The Federal Employer Identification Number (FEIN) of the business or social security number (SSN) of the sole proprietor.
  • The legal business name or sole proprietor’s name.
  • Your DBA, if you have one.
  • The names and SSNs of responsible owners/officers.
  • Banking information (to pay the $100 fee).

Sales tax permits in Connecticut need to be renewed every two years, which you will also need to do online.

What happens if I don’t get a CT sales tax permit?

According to the CT Department of Revenue Services, “Failure to obtain a tax permit will result in a fine of not more than $500 or imprisonment of not more than three months, or both, for each offense.” Sheesh, that’s harsh. Better to cough up the $100 fee now and not risk serving jail time.

Find out more about How to Start a Business in Connecticut.

This entry was posted in Opinion.