Colorado Retail Delivery Fee. July 2022


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.

This text is copied from the Avalara Help Center post. Link indicated below

You can read the Avalara communication on this post, and related information on this blog.


Calculating the Colorado Retail Delivery Fee in SAP BussinesOne

The fee is calculated by Avalara. The Avatax SAP B1 just sends the transaction information to Avalara and handles the response.

In order to have the Colorado Retail Delivery Fee calculated, you need to include a new line item in the sales document, with the provided Avatax TaxCode (OF400000), and a valid Colorado Ship-To address set for this line, and Avalara will calculate and return the expected fee. 

Define a new item in your Item Master Data, like this:

Then you can include the item o a sales document, and get the tax calculated including the fee (for the release day it will be USD 0.27).