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How Colorado Handles Tax on Shipping

Learn how Colorado handles sales tax on shipping charges

Updated over a month ago

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

  1. A taxable product is $100, with a separately stated $15 “Delivery” charge → $15 is exempt.

  2. 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.

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