Colorado generally exempts delivery charges if they are clearly separated from the price of goods on the invoice.
General Rule
Exempt: Shipping charges are exempt if separately stated.
Taxable: If delivery is included in the product price or not separated, it becomes taxable.
Handling Charges
Handling, packing, or combined “shipping & handling” fees are always taxable.
Best Practices for Compliance
Itemize delivery costs clearly on invoices.
Don’t bundle handling with shipping, since it makes the entire fee taxable.
Example
A taxable product is $100, with a separately stated $15 “Delivery” charge → $15 is exempt.
The same invoice shows $15 for “Shipping & Handling” → $15 is taxable.
Stay Compliant with Kintsugi
Colorado’s rules can be tricky if invoices don’t clearly separate charges. Kintsugi Intelligence makes sure your invoices are properly structured to stay compliant without extra effort.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.