Why this matters for restaurants
If you’re running a restaurant that lists on delivery apps or third-party ordering platforms, chances are you’re impacted by what are known as marketplace facilitator tax rules. In other words: when a marketplace platform connects you to customers and handles the payment, the tax-collection responsibility might shift—so you’ve got to understand it. Otherwise, you could leave money or compliance risk on the table.
What are these rules in plain language
Here’s the thing: a “marketplace facilitator” is generally a platform that lists or advertises sellers (in this case, your restaurant), processes payments, and helps make the sale happen. Many states now say that the facilitator, rather than the individual seller, must collect and remit sales tax for transactions on that platform.
For you, that means: if your restaurant sells meals through a food-ordering marketplace, you might not have to collect certain taxes for those orders—but you still need to know exactly what’s happening.
And yes, there’s a twist: even if the marketplace collects tax for the sales taking place through the app, you might still have reporting or registration obligations when you also take orders directly (website, phone, walk-ups). So you can’t just say, “oh the app handles everything,” and walk away.
Why you should care
Running a restaurant means juggling staffing, supply costs, food waste, and maybe trying online delivery while you keep your dine-in vibe strong. The last thing you want is a surprise tax bill or audit because a platform you use didn’t notify you of your obligations.
Also: if you think “well, the marketplace is doing it” and you stop monitoring things, you might still be on the hook for parts of your business outside that marketplace (for example, direct sales). Ignoring the rules doesn’t make them go away.
Key thresholds & state differences
These rules aren’t uniform. States set different thresholds and rules for when the marketplace must act. For example:
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In many states, when a facilitator’s sales into the state exceed $100,000 (or sometimes 200+ transactions) in the current or prior year, the tax-collection obligation kicks in.
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In some states, the facilitator must collect tax regardless of size (e.g., some jurisdictions treat any sales via the marketplace as taxable).
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In California, the facilitator became responsible in October 2019 for sales through the marketplace channel.
For your restaurant, this means: if you list on a large platform (think Uber Eats, DoorDash, or Grubhub), the app likely collects tax for that channel. But if you also take direct web orders or run your own site, you still need to check whether you have a registration or filing duty for those direct orders.
What you need to do right now
Okay, so here’s your actionable checklist:
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Map your sales channels – List every way you sell food: direct website, app-based marketplace, third-party deliveries, and in-house kiosks.
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Ask the platform – For the marketplaces you use, ask whether they’re registered in your state(s) as the collecting entity and whether they issue certification to you as a seller.
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Check your direct sales – For sales that go through your own website or physical location, determine if you have nexus (economic, physical, inventory) in the state and whether you’re responsible for tax collection.
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Keep documentation – Save the marketplace certification; keep your sales records by channel; note which transactions the platform handled vs. which you handled.
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Consult your accountant – Because this interplay of direct vs. marketplace sales complicates things, it’s wise to loop in your tax adviser (ideally one with experience in restaurant or food-and-beverage industries) to make sure your compliance is tight.
A word on multi-state and food-service nuances
Your restaurant may deliver across state lines—especially if you ship specialty food items or operate near borders. That complicates things because every state has its own rules and thresholds. The same marketplace facilitator laws that apply to product sellers also apply to food when delivered remotely.
And if you store inventory in a third-party fulfillment center (even for meal kits), you may create physical nexus and trigger tax obligations outside your marketplace channel.
One more thing… don’t forget about the “other side”
Even if the facilitator collects tax for the marketplace sales, you should still evaluate whether you have to file “zero returns” or maintain registration if your state requires it. Some states expect sellers to continue filing returns even when tax is collected by the marketplace.
Also, your internal bookkeeping should separate marketplace-channel income from direct-sales income so that, when you reconcile tax, you can clearly see which orders were covered by the facilitator and which weren’t.
Final thoughts — Yes, this is complex, but you’ve got this
I know—tax rules, marketplace thresholds, and multi-state filings don’t feel like your core passion (which is serving great food and running your dining room). But staying ahead of the marketplace facilitator piece means less risk, fewer late-night worries, and more focus on delighting customers.
You know what? Being proactive here actually frees you up. Once you understand which channels handle what tax burden, you’ll spend less time scrambling each quarter, less time digging through invoices, and more time thinking about your next seasonal menu or delivery special.
If you ever want to walk through how this applies to your specific restaurant—say you operate in multiple states or sell meal kits online—we’re here to help. Let’s make sure your tax and accounting game supports your growth, not holds it back.