I opened my shop April of last year and I collected about $8 dollars in sales tax from 7 customers from Colorado. I did this thinking, "Better collect it so I don't get in trouble later and be asked to pay up for these transactions" So should I pay my customers back? I have "robbed" my customers and I owe each one from .60 cents to $1.90. I have now removed my sales tax since I have no idea what to do next
I've read the Department of revenue on getting a sales tax license and I relate to this category: Small Home Businesses -- If all retail sales are from a private residence and the gross sales are less than $1,000 a year then a small home business is not required to hold a sales tax license.
I'm not making 1k a year so I shouldn't get a sales tax license? Should I not tax Colorado? And should I be refunding my customers?