VATupdate
Colorado

Share this post on

Tax Exemption for Subscription-Based Membership Fees in Colorado

  • Subscription-based membership fees for unlimited delivery are not taxable in Colorado
  • The company operates an online marketplace connecting purchasers with third-party retailers and delivery services
  • Charges for delivery, fulfillment, handling, and busy pricing are separately stated fees
  • Purchasers can opt for an annual or monthly delivery membership for unlimited delivery
  • Transportation services are not subject to tax in Colorado if separable and stated separately
  • Membership is not required to shop with the company and can be purchased at any time
  • The primary benefit of the membership is unlimited free delivery
  • Membership fee is separable, separately stated, and not subject to state sales or use tax

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

Sponsors:

VAT news
VAT news

Advertisements: