Hello - can you tell me how to add a Retail Delivery Fee to any order placed in Colorado? Effective July 1, 2022, Colorado will impose a retail delivery fee on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or us…

Here’s their reply to me: Hey Justin, Abby here from Shopify Support - hope this email finds you well! It is a pleasure to assist you today! Thank you for reaching out and sharing the details of your tax inquiry. I have spoken to our escalated Taxes team regarding the upcoming Colorado Retail Del…

HI All, Thank you to everyone that followed up on this with Shopify and a big thank you to Shopify for incorporating the Retail Delivery Fee directly into sales taxes. I ran a quick report and saw that the RDF was calculating correctly for us here at HappyLuckys.com . Last thing any of us wanted to …

Hi everyone! Are there any issues with the RDF not being itemized as a separate line item on the customer invoice? Also for reporting is it included in the tax rate and not itemized as Retail Delivery Fee? How is everyone working around those issues? Thanks!

I was told by Shopify that the RDF was currently included in the tax rate, but they are working on adding it as a separate line item. Unfortunately, no timeline was give for that feature.

The RDF is itemized as its own tax line item, just like State tax, County tax, and local taxes are itemized - which is to say, in the background (JSON). In the Orders admin console in Shopify, you can click “Show tax rates” and see the itemized details. [Screen Shot 2022-07-06 at 2.25.17 PM.png] …

That’s awesome to see we are at least collecting the fee, but Colorado does state the RDF is not a TAX, but a FEE. Also, we have vendor accounts so some orders are not charged tax at all, which means they will NOT be charged the fee. Currently Shopify is including the RDF in with the total tax line. …

@shawnastm The distinction between tax and fee is largely political, I think. The RDF is connected to sales tax in multiple ways: If you don’t have to collect sales tax in CO, you don’t have to collect the fee. If you have a sales tax account already in CO, they automatically set up an RDF account…

@shawnastm give this a try in the Order Printer Invoice template. If shipping to CO and total tax > $0, this shows the RDF on it’s own line and subtracts the $0.27 from the total tax amount shown. {% if tax_price > 0 %} Total tax: {% if shipping_address.province_code == "CO" %} …

@jasonh Unfortunately, this doesn’t satisfy the requirement spelled out by Colorado that “The fee must be charged to the purchaser as a “retail delivery fee” and separately stated from the purchase price of the item(s), the sales or use tax, and any other fees or charges applied.”

Not only that, but some municipalities (like Aurora) are assessing their local sales tax ON THE FEE. So while I agree with @eric_moore 's logic, there are additional complications that Shopify needs to address.

Adding an Retail Delivery Fee - New Legislation in Colorado

Accounting & Taxes

jasonh July 7, 2022, 4:45pm 35

Hi @NinaAaron ,

We have rolled out the Retail Delivery Fee to all merchants collecting tax in Colorado. You can read more about the fee here.

Thanks!

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Adding an Retail Delivery Fee - New Legislation in Colorado

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