Sage 100

 View Only
  • 1.  ICYMI: Colorado Retail Delivery Fee begins July 1, 2022

    Posted 06-14-2022 11:03

    Avalara just sent around this notice regarding Colorado Retail Delivery Fee which is starting July 1, 2022 and is separately listed from traditional sales tax. It's an interesting development because if Colorado is successful here then it isn't too tough to imagine all the other states jumping on the bandwagon with their own similar fees. 

    https://help.avalara.com/Frequently_Asked_Questions/AvaTax_FAQ/ACTION_NEEDED%3A_Colorado_Retail_Delivery_Fee_begins_July_1%2C_2022

    State of Colorado 

    https://tax.colorado.gov/retail-delivery-fee

    ACTION NEEDED: Colorado Retail Delivery Fee begins July 1, 2022

     

    Overview

    Beginning July 1, 2022, the state of Colorado is imposing a $0.27 Retail Delivery Fee (RDF) on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales and use tax. 

    Retailers must separately state the retail delivery fee on all customer invoices and receipts.

    Note: The fee is levied on all qualifying deliveries, even when shipping is free.

    Who is impacted?

    Retailers licensed to make sales in Colorado. Examples include, but are not limited to:

    • Restaurants that deliver
    • Grocery Stores that deliver
    • Flower delivery services
    • Sales that require delivery
    • Furniture
    • Appliances
    • Electronics
    • Online stores that ship orders
    • Business-to-business retail sales (excluding wholesale sales)

    What transactions are subject to the RDF?

    All retail sales that:

    • have at least one item delivered by motor vehicle and

    • include at least one item that is subject to Colorado state sales tax.

    What are the State Registration requirements?

    • No registration fee
    • No additional license required
    • Retailers cannot opt-out of the automatic registration
    • For taxpayers with an active sales tax account, a retailer license, and any sales tax liability reported after January 1, 2021:
      • As a courtesy, the CO DOR will automatically register your business for an RDF account by July 1, 2022.
      • Additionally, any open out-of-state retailers or retailer's use account holders will be automatically registered for an RDF account
    • Retailers who open accounts after July 1, 2022, or who don't meet the criteria above, will be able to register:
      • through Revenue Online
      • by filing the Retail Delivery Fee Return, form DR 1786
      • or by submitting form CR 0100AP

    What if my company is not required to file the RDF?

    If you do not make retail deliveries that require the filing of the RDF return and do not file any RDF returns, the account will automatically be closed by February 28, 2023.

    Note: If you do not file returns while the account is open, you may receive letters from the Department suggesting that you file a return if you are required to collect and remit the RDF.

    Notices

    If you do not make retail deliveries that require the filing of the RDF return and do not file any RDF returns, you may receive letters from the Department suggesting that you file a return if you are required to collect and remit the Retail Delivery Fee. Please do not submit these notices to Avalara.

    If you do not wish to receive letters, you may close the Retail Delivery Fee account at any time:

    • through Revenue Online
    • by submitting form DR 1108
    • or by contacting the Taxpayer Helpline at 303-238-7378


    ------------------------------
    Wayne Schulz
    wayne@s-consult.com
    Schulz Consulting
    (860) 516-8990
    Moodus, CT
    ------------------------------


  • 2.  RE: ICYMI: Colorado Retail Delivery Fee begins July 1, 2022

    Posted 06-22-2022 21:17
    Edited by Wayne Schulz 06-22-2022 21:17
    6/22/22 - Sage just issued this KB on how to setup sales tax for collection of the new delivery fee

    Sage KB Entry  115886 - Colorado Retail Delivery Fee

    ------------------------------
    Wayne Schulz
    wayne@s-consult.com
    Schulz Consulting
    (860) 516-8990
    Moodus, CT
    ------------------------------



  • 3.  RE: ICYMI: Colorado Retail Delivery Fee begins July 1, 2022

    Posted 06-23-2022 10:05
    There are some challenges with the setups Sage is recommending.  The "fee" of $ 0.27 for Colorado Retail Delivery only applies if "real items are being delivered"; so not applicable if you are selling /Misc Items and not "shipping anything".  It also only applies if there are "any" taxable items on the order.  So it the order includes all "non taxable" inventory items, it is not applicable.   I am suggesting to my clients that don't use Avalara to add a /Misc Item Code to those orders that ship into Colorado and have taxable inventory on the order, /CORDF Colorado Retail Delivery Fee Charge at (1) @ 0.27/each.  Have it post to ta special Sales Tax Payable Account and report off that as needed.  And if they are using Avalara, they will still add that /CPRDF item code but at $0.00 each, and the description will say "Colorado Retail Delivery Fee of $ 0.27 included in total taxes".  The /Misc Coded needs to be defined in Avalara per their documents.  ​

    ------------------------------
    Madeline Stefanou
    RKL eSolutions, LLC
    ------------------------------



  • 4.  RE: ICYMI: Colorado Retail Delivery Fee begins July 1, 2022

    Posted 06-23-2022 10:18
    Madeline,

    I think for someone who doesn't already use Avalara they should be able to get going with the Sage instructions by either (a) creating another sales tax code used for orders that don't include delivered items and (b) the non-taxable situation seems like it would be ok since the .27 wouldn't compute either.

    The bigger issue is whether other states pile in and add their own unique fees. I bet if Colorado shows a material gain from implementing this fee that other states will follow.

    BTW, I bet the cost to have Avalara collect, compute and report the .27 is 3x the fee charged itself ......( If you can ever even figure out what Avalara is charging for the Colorado fee -- which won't be easy IMO )

    ------------------------------
    Wayne Schulz
    wayne@s-consult.com
    Schulz Consulting
    (860) 516-8990
    Moodus, CT
    ------------------------------