ShipCompliant supports the Colorado Retail Delivery Fee (RDF), imposed by the state starting in 2022. This fee ($0.28 per retail sale for delivery) applies to all retail sales delivered by a motor vehicle to a location in Colorado, including third-party deliveries.
In early 2023, an exemption was added for businesses that make less than $500,000 in annual retail sales in Colorado. If your business in the state falls below this sales threshold, you're not subject to the RDF requirements. If you had previously registered for the RDF but meet the requirements for this new exemption, contact the state to cancel your registration.
Our API methods allow all integrated partners to ingest this fee alongside recommended sales tax due. On the reporting side, we provide the DR-1786 Retail Delivery Fee Return for paper or e-Filing.
Setting up the RDF in ShipCompliant
Setup to collect and report on the RDF will vary based on which POS platform you use. Some may not require any setup in ShipCompliant. Contact your POS provider for more details.
If you use Commerce7, check out their setup instructions here.
Setting up reporting for the RDF
You'll need to set up your tax preferences and subscribe to the report that's right for you.
- In ShipCompliant, go to Tools and click Tax Preferences.
- Find Colorado in the list. In the dropdowns under Onsite and Offsite Orders, select the tax preference that fits your reporting needs. Look for the options including "+ Retail Delivery Fee".
- Next, subscribe to the Retail Delivery Fee report. Go to Reports and click Report Settings.
- Find the Colorado Retail Delivery Fee Return. Click Edit.
- Select the filing frequency the state has set for you, and choose your preferred filing method. Then click Save.