Has anyone using Avalara figured out solution for ...
# general
m
Has anyone using Avalara figured out solution for the $0.27 delivery fee for Colorado that goes in effect tomorrow? We found an article on the Avalara website but nothing about how to implement something for this.
m
We use Avalara and I just had a conversation with our accounting department about this (I'm our NetSuite admin/developer). Our plan is to leverage scripting to automatically add a new $0 item to every order with a delivery location in CO, with that item's tax code set to whatever the right code in Avalara is (I don't have the specifics from the accountant yet). As far as what I've seen from Avalara, even at $0 the line should add the correct amount of tax to the order, and we'll use the description of the item to reference the amount to satisfy that part of CO's requirements.
I have to say though, I've dealt with a lot of pretty ridiculous seeming sales tax issues over the years (as a rental company, taxes are never straightforward for us) and this stands out as an absurd (and rushed, as far as I can tell) implementation on CO's part.
m
I agree it’s rushed for sure!
p
This new Colorado deliver fee is a pain. one issue we are having is if the order is zero price. Avalara is still adding the .27
m
@Pete Kastner As much as it feels backwards, are you sure that behavior is incorrect? Per Avalara:
Beginning July 1, 2022, the state of Colorado is imposing a $0.27 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 and use tax.
I'll admit I haven't dug into the specifics myself (I've left that to our accounting department) but I could definitely see an interpretation of that where any order with at least one taxable item, even if it's $0 on that particular order, is subject to the tax if there's a motor vehicle delivery involved.
l
@MTNathan is correct, a $0 fee will lead to an automatic charge of .27 for tax purposes.
c
So would that be captured by the delivery company versus the retailer? Unless you are the delivery company?
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m
@Chance Fry It would be safest to check with a tax professional that understands your specific business to be sure, but my personal understanding is that the retailer is responsible for collecting this fee from the consumer regardless of who is doing the delivery (i.e. if delivery is being done by your employee vs. by a third party parcel carrier, I don't believe it changes the need to collect and remit the fee to the state).