How does Shopify handle the Colorado Retail Delivery Fee?

MichaelDeMas
Visitor
2 0 0

How does Shopify handle the Colorado Retail Delivery Fee?

Replies 7 (7)

KP_Enterprises
Explorer
59 2 16

Thanks for asking the question. I sure wasn't aware of yet another fee by the state. I emailed our acct rep. I'll let you know if I get an answer.
Here is a link to the fee if anyone wishes to know more.
https://tax.colorado.gov/retail-delivery-fee

SalesTaxGreer
Tourist
5 0 2

I ran a couple of test transactions in Colorado and saw that the retail delivery fee was calculated and added to the total tax.  I have not followed this through to the reports to see how it is identified, and I know it's a separate return (separate from sales tax) that needs to be filed.

GaryRSVS
New Member
4 0 0

They add it as a line item to the taxes.  Unfortunately, for those of us who use Avalara for tax compliance, this is not how they (Avalara) wants it to be handled.  Avalara wants a $0 value line item added to the invoice, using a code tied to their code for the tax,

 

I would like to hear from a Shopify-Avalara user who has been successful in getting this to work.

 

mmusa
Visitor
3 0 0

Did you get an answer to this? We use Avalara with Shopify and export our Shopify orders to an ERP which also uses Avalara. I created an item in Shop as configured in my screenshot attached. Using Shopify Flow, I automated a task to add the item to a created order anytime the order contained a CO address. You could potentially do this without Flow using a 'bogo' automatic discount based on a customer segment.

GaryRSVS
New Member
4 0 0

The only answer I received from Shopify was that "we have it working".  Not very helpful.  We ended up doing the same thing - a script to the CRDF as a line item.  We just turned it on today.

 

tlittlefieldlsf
Visitor
1 0 0

Hi there, are you still using this as a solution for your store? I'm considering doing the same but wondering if a proper solution has been put into place now that we're almost 10 months from the start of collection..

GaryRSVS
New Member
4 0 0
We are but it is still not working. We understand that Colorado may allow sellers to simply pay the $0.27 so this may go away soon.