Connecticut requires businesses to collect sales tax on most consumer and business-to-business transactions. A Connecticut business first registers for a Connecticut sales tax permit. The business then collects taxes from its customers and send them to the Connecticut Department of Revenue Services.
Start a business by filing with the Connecticut Secretary of State. This step is mandatory only for certain Connecticut businesses like corporations, limited liability companies and certain partnership entities. Visit the website at ct.gov/sots/site/default.asp and read through the filing information to determine if you need to register your business. This step is important because you need to use your registered business name when filing for sales tax and other business tax permits and tax ID numbers.
Visit the Internal Revenue Service website at IRS.gov to determine if you need an employer identification number from that federal tax agency. Generally, you will need an EIN number if you have employees or run a Connecticut nonprofit. Search under “EIN application” to find the relevant information. You can then use this number on your Connecticut sales tax forms.
File for Connecticut sales and use tax. You need to get a sales and use tax permit from the Connecticut Department of Revenue Services. Do this before making sales in the state. Use the “Registration Options” page at ct.gov/drs/cwp/view.asp?a=1509&q=266240. In Connecticut, you will get a business tax ID number when you submit this form. While many states allow you to register for sales tax for free, this state charges $100.
Use the “Sales Tax Information” page at ct.gov/drs/cwp/view.asp?a=1454&q=271482&drspnavctr=| to determine whether your products or services are taxable.
Use the same page to find information on the Connecticut sales tax rate and get tax forms. The page has a lesson on how to file a timely sales and use tax return in Connecticut. The basic sales tax rate is 6 percent, and the hotel room occupancy tax rate is 12 percent (applies for stays of 30 days or less).
Submit the sales tax returns within the deadlines to avoid penalties for failure to file a timely sales tax return.
Connecticut Questions and Answers on Sales and Use Tax for New Businesses