Colorado Retail Delivery Fee | Everything You Need to Know | Summary and Q&A

TL;DR

Starting July 1st, 2022, retailers selling tangible personal property into Colorado must collect a retail delivery fee of 27 cents per transaction.

Key Insights

• 🤱 Colorado's retail delivery fee applies to retailers selling taxable tangible personal property into the state via motor vehicle.
• 😇 The fee is 27 cents per delivery and must be separately stated on the invoice.
• 🤱 Retailers need to establish an account with the Colorado Department of Revenue, turn on fee settings on sales channels, and file a separate return for the delivery fee.
• 🤱 Marketplace facilitators are responsible for collecting and remitting the delivery fee on behalf of sellers.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: What is the criteria for retailers to collect Colorado's retail delivery fee?

Retailers must sell taxable tangible personal property into Colorado via motor vehicle to be required to collect the delivery fee. It does not apply to exempt entities or sales to distributors.

Q: Who is responsible for paying the delivery fee?

Legally, purchasers are responsible for paying the delivery fee to the Department of Revenue, but businesses are required to collect it from customers and remit it to the state on their behalf.

Q: Do marketplace sellers need to collect the delivery fee?

If you sell through a marketplace facilitator like Amazon, Etsy, or Walmart, they are required to collect and remit the delivery fee on your behalf. However, if you sell on your own website, you still need to collect the fee.

Q: Is the delivery fee related to shipping costs?

No, the delivery fee is separate from shipping costs. Even if your website offers free shipping, you still need to charge the delivery fee if the transaction meets the criteria.

Summary & Key Takeaways

• Colorado's retail delivery fee requires retailers to collect a fee of 27 cents per delivery for tangible personal property sold into the state.

• The fee applies to taxable products delivered via motor vehicle to customers in Colorado.

• Businesses must establish an account with the Colorado Department of Revenue, turn on the fee settings on sales channels, and file a separate return for the delivery fee.