Configure Retail Delivery Fee for Colorado Marketplace Sales

Last updated: Dec 17, 2025, 5:08 PM

Question

  • How do I add a retail delivery fee for marketplace facilitator sales in Colorado?
  • How should I set up my retail delivery fee for marketplace sales in Colorado?
  • Does Toast calculate taxes for marketplace facilitator sales in Colorado?

Answer

In Colorado, Toast is classified as a marketplace facilitator ("MPF") for orders placed through the Local by Toast app and Toast Local platforms. As the MPF, Toast is responsible for collecting and remitting sales and other applicable taxes for Toast MPF orders.

 

Colorado also imposes a retail delivery fee if the order is delivered by motor vehicle to a location in Colorado. As the MPF, Toast is responsible for collecting and remitting the retail delivery fee on the tangible personal property sold through the Local by Toast app and Toast Local platforms and delivered in Colorado. Deliveries include when any taxable goods are mailed, shipped, or otherwise delivered by motor vehicle to a purchaser in Colorado.

 

Our tax system will automatically apply Colorado’s Retail Delivery Fee to Toast MPF delivery orders. To cover this fee on any other delivery platforms that you offer your guests, you can follow these steps:

 

  1. Create a service charge in Toast Web by navigating to Payments > Checks & receipts setup > Service charges (for more detailed instructions, see Get Started With Service Charges and Mandatory Gratuity).
  2. Be sure to include “CO RDF” or “Retail Delivery Fee” in the name of your service charge. 
  3. Save and publish your changes.

 

Note: If you’ve already created a service charge to cover this fee on all delivery platforms, renaming the service charge to include “CO RDF” or “Retail Delivery Fee” will help our system detect and avoid charging guests 2x for the same fee on delivery orders through Toast Local or the Local by Toast app.

 

If you have additional questions about what this means for your own tax reporting, we recommend working with an accountant or tax advisor.

Additional Information