Recently, the Colorado Department of Revenue introduced a Retail Delivery Fee - which comes into effect on July 1, 2022. Retailers, including wineries with a physical location in Colorado, or an out-of-state winery with retail sales into Colorado of more than $100k in a calendar year are required to collect and remit the retail delivery fee. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado. The retail delivery fee is due at the same time as your sales tax return.
Below are answers to frequently asked questions:
1. Does my business need to collect and remit the retail delivery fee?
If your winery is located in Colorado, or you are an out-of-state winery with retail sales more than $100k into Colorado, then you will need to collect and remit the retail delivery fee.
To determine if you are above the $100,000 per year threshold, you can:
2. How do I find out how many "deliveries" I have made into Colorado for reporting and payment purposes?
If the retail delivery fee applies to your business, you need to remit $0.27 per order shipped. Based on FAQ no. 12 on the Colorado Department of Revenue Taxation Department website.
"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."
WineDirect supports these reporting requirements - follow these steps for the best way to get the information you need to report and pay (when applicable):
3. Do I need to present the Retail Delivery Fee on the invoice?
The answer is: “not yet.” CO DOR has stated the following regarding the requirement to present the retail delivery fee on invoices or receipts, based on FAQ no. 8:
“...the Department currently has no plans to prioritize enforcement of this provision as long as retailers are paying the full amount of the fees due in accordance with their liability under section 43-4-605(6)(c), C.R.S. Retailers who are temporarily paying the fees are advised to avoid statements indicating that the retail delivery fee will be assumed or absorbed or that it will not be added to sale as prohibited by section 39-26-108, C.R.S.”
We will keep you posted on these developments as they evolve.
For further information, check out this great up-to-date resource in the FAQs at the bottom of the Colorado Department of Revenue website. It states important details on who is impacted by this change, when the change is in effect, and when the department will begin to enforce the requirement to present the fee on the consumers invoice or receipt (they are delaying enforcement for now). Thank you.