You must obtain a Sales and Use Tax Permit from the Department of Revenue Services if you intend to engage in any of the following activities in Connecticut:

·        Sale, rental, or lease of goods;

·        Sale of a taxable service; or

·        Operation of a hotel, motel, or lodging house.

You must obtain a Sales and Use Tax Permit before making any sales. If you are purchasing an existing business, you may not use the Sales and Use Tax Permit issued to the previous owner. You are required to obtain a new Sales and Use Tax Permit. If you will have more than a single place of business, you must obtain and display a Sales and Use Tax Permit for each location.

The requirement to obtain a permit applies to individuals, corporations, partnerships, and all other business entities that will make sales in this state, regardless of the number of sales that will be made or the amount of tax that will be collected. (Please note: These rules do not apply to casual or isolated sales, which are infrequent sales of a nonrecurring nature made by a person not engaged in the business of selling tangible personal property or taxable services.) Manufacturers and wholesalers as well as retailers must obtain a permit.

As a seller, you are responsible to collect sales and use taxes and you are liable for their payment whether or not you collect them as required from your customers. You must file returns and pay the full amount of tax due DRS.  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.