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Starting July 1, 2022, the State of Colorado will impose a retail delivery fee on all deliveries made by motor vehicle to a location in Colorado where at least one item in the order is subject to state sales or use tax. You will be liable to collect and remit the Colorado state retail delivery fee on all eligible orders starting July 1, 2022.

 

Getting Started 

What is a Retail Delivery Fee account? 

If you sell taxable items for delivery in the state of Colorado, you need a retail delivery fee account to pay the retail delivery fee. The retail delivery fee is a separate account from your sales tax account. 

 

How do I sign up for a Retail Delivery Fee account? 

First, we recommend that you create a Retail Delivery Fee account. If you have an active sales tax account with the Colorado Department of Revenue, then you will be automatically registered for a retail delivery fee account by July 1, 2022.

Existing Accounts

Option 1: Register using your Revenue Online account. 

  1. Log in to Revenue Online at https://www.colorado.gov/revenueonline/
  2. Go to the “More” tab.
  3. Click on the “Add Retail Delivery Fee Account” link in the “Additional Actions” panel.

 

Option 2: File Using the PDF DR 1786 Form. 

  1. Complete and file the Retail Delivery Fee Return using the DR 1786 form. This will register a Retail Delivery Fee account for you.

 

Option 3: Use the Sales and Use Tax System (SUTS) to sign up for a Retail Delivery Fee account. This functionality is slated to be released by the end of 2022. 

New Accounts

Option 1: You will be able to add a Colorado Sales Tax and Withholding Account by submitting a CR 0100AP form. On the new account, you will have the ability to indicate that deliveries of taxable goods will be made. Be sure to select the correct box on the application so that a Retail Delivery Fee account will be added. 

Reporting & Payment

Who is liable for the retail delivery fee? Do I charge the fee to my customers? 

The retail delivery fee is imposed upon the purchaser. However, the retailer who sold the eligible item(s) for delivery by a motor vehicle is required to collect the fee from the purchaser and remit it to the Colorado Department of Revenue. 

My customer ordered multiple items; do I charge one delivery fee per order or per item? 

The retail delivery fee is based on each sale to the customer. If a customer orders a number of items in a “cart” and purchases all of the items at the same time, only one retail delivery fee is due regardless of how many deliveries are actually needed to complete the sale. Alternatively, if a customer orders a number of items and completes the purchase of each item at different times, the retail delivery fee is due on each sale, even if only one delivery is needed to complete the sale.

When do I have to start collecting the Colorado state retail delivery fee?

You will be liable to collect and remit the Colorado state retail delivery fee on all eligible orders starting July 1, 2022. Because you are liable for any uncollected fees, the State of Colorado encourages you to begin collecting the fees on applicable sales as soon as possible to limit your liability.

How is the Retail Delivery Fee applied to my orders? 

Accounts with Automated Tax Calculation Enabled

If you already have automated tax calculation enabled for your account, we will add a separate line item for the Retail Delivery Fee in checkout and collect the $0.27 fee on all eligible orders. The fee will be visible on all applicable email notifications, packing slips, and order details pages. You can also find the Retail Delivery Fee in several reports for reconciliation purposes.

Accounts Using Manual Tax Calculation

If you are currently using manual tax calculation, we strongly encourage you to switch to Automated Calculation. 

 

You can find your tax settings by navigating to Settings > Tax > Settings

 

When is the retail delivery fee due? 

The retail delivery fee is due at the same time as your sales tax return. Returns are generally filed on a monthly basis and must be filed on or before the 20th day of the month following each reporting period. Retailers permitted to file state sales tax returns on a quarterly, annual, or other basis will file the retail delivery fee return on the same schedule.

Which return form do I use for the retail delivery fee? 

The retail delivery fee will be reported and paid on a new return, the DR 1786 form. The retail delivery fee is collected state-wide, does not need to be separated by jurisdiction, and is calculated per sale. The retail delivery fee is made up of six different fees. The rates are listed below.

RevolutionParts Partnership

How is RevolutionParts supporting me through this update?

To streamline your fee collection process, we will add a separate line item for the Retail Delivery Fee in checkout and collect the $0.27 fee on all eligible orders. The fee will be visible on all applicable email notifications, packing slips, and order details pages. You can also find the Retail Delivery Fee in several reports for reconciliation purposes.

 

Can RevolutionParts help me calculate, collect, and report sales tax owed?

Yes! RevolutionParts can help you with calculating, collecting, and reporting sales tax owed. RevolutionParts Marketplace Tax Comply shifts the burden of sales tax compliance and collection in the United States from you to RevolutionParts!

 

Where can I learn more about this update? 

We will do our best to guide you through this transition. You can learn more about the update on the Colorado Department of Revenue website at https://tax.colorado.gov/retail-delivery-fee

 

You may also reach the Taxpayer Helpline at (303) 238-7378. Colorado Taxpayer Service Representatives are available (except on state holidays) Monday through Friday, 8:00 a.m. to 4:30 p.m. MT. 

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