Taxable Restaurant Delivery Fees in Colorado

Monday, August 17th, 2015

 
 
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Colorado
Food

The Colorado Department of Revenue (DOR) determined that a restaurant's delivery fee was taxable.

The restaurant allowed customers to order at the restaurant, by phone, or through its website. When customers ordered by phone or website, they were not notified that the price included a delivery fee or that they could avoid the fee if they picked up the food at the restaurant.

Colorado law requires a delivery fee to be both (1) separable from the sale and (2) separately stated on the invoice for it to be not taxable.

The DOR determined that the fee was separable from the sale because the customer had the option to pick up its order rather than have it delivered. However, the delivery charges were not "separately stated." Although the fee was separately stated on the invoice, at the time of the order, customers did not know about the separate delivery fee. As a result, the delivery fee was not separately stated and was taxable.

https://www.colorado.gov/pacific/sites/default/files/Delivery%20Charges%20General%20Information%20Letter%20GIL%2015-012.pdf


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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