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CO Retail Delivery Fee

Learn about the CO Retail Delivery Fee and how to set it up in ShipCompliant.

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 are 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.

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 on the Commerce7 website.