“We Handle the Sales Tax for You” — But Do They Really?
If you’ve ever assumed that online ordering platforms or POS systems are managing every aspect of your tax liability, you’re not alone. That little checkbox in the backend dashboard that says “sales tax included” feels comforting—like setting a timer on your oven and walking away.
The problem? That’s only part of the picture.
Marketplace facilitator laws require certain platforms—like Uber Eats, Grubhub, or even Shopify—to collect and remit sales tax on your behalf. Sounds great, right? But only if you operate exclusively through those platforms. If you also sell in person, use another POS system, or have multiple channels with varied tax setups, you’re likely still on the hook for part of the compliance puzzle.
State Rules: A Game of Whack-a-Mole
You know what’s fun? Each state having its own take on who qualifies as a “facilitator.” One state says your POS provider needs to collect tax; another says only the marketplace app is responsible. A third says you’re the facilitator, somehow.
It’s like plating a dish using three different recipes—none of them matching. And just when you think you’ve figured it out, a state changes its rules mid-year. Some even apply changes retroactively. That’s right: you could find out this fall that your summer sales are now subject to taxes you didn’t plan for.
If you’re not checking state requirements regularly, you might be missing something critical—and it’s not like they send you a heads-up.
Your POS Isn’t a Magic Shield
We’ve seen this one a lot. Restaurants put a ton of faith in platforms like Square, Toast, or Clover. And sure, they’re solid tools. But they only automate what they’re told to automate. If your settings are wrong—or you’re relying on outdated tax tables—things can slip through the cracks.
Plus, these systems usually can’t account for nuanced state rules or complex product exemptions. That local bakery exemption? Probably not baked into your Toast settings (pun intended).
And syncing data between multiple platforms doesn’t guarantee consistency. You might end up filing taxes on sales that were already taxed—or worse, not filing at all.
The Hidden Triggers Nobody Talks About
Here’s something that catches a lot of restaurant owners off guard: economic nexus. It’s a fancy way of saying, “You sold enough stuff in a state that now you owe them taxes—even if you don’t physically operate there.”
This matters a lot during seasonal spikes. Say you run a pizza spot near a stadium, and business booms during playoff season. You could blow past a state’s sales threshold in a matter of weeks. Or maybe a popular food blog features your menu and out-of-state delivery orders spike. Just like that, you’re in new territory.
The IRS and state tax agencies aren’t just looking at your sales—they’re following your footprint.
So, What Should You Actually Do?
Look, no one’s asking you to become a tax expert between lunch rush and happy hour. But there are steps you can take to make sure you’re not setting yourself up for a rude audit surprise.
Here’s what helps:
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Centralized Reporting: Pull all your data into one clean dashboard. Spreadsheets are fine—if they’re accurate.
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Periodic Reviews: Check your tax compliance quarterly. Rules change. You don’t want to find out 12 months later.
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Ask the Hard Questions: Is your POS applying the correct tax rates? Are you charging (and remitting) on delivery fees? Who’s filing where—and how often?
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Get a Pro: Talk to someone who’s handled this before. Not just a generalist. Someone who knows the restaurant world and its quirks.
And let’s not forget—compliance doesn’t just keep auditors happy. It affects your valuation if you’re looking to expand or sell. Nobody wants to buy a place that comes with hidden tax skeletons.
It’s Not Just About Rules—It’s About Staying in Control
There’s something satisfying about getting your books straight. Like walking into a spotless kitchen at open. You don’t have to worry about what you missed or what’s waiting for you around the corner.
Marketplace facilitator compliance might not be the flashiest part of running a restaurant—but it’s one of those behind-the-scenes things that makes everything run smoother. Like prep work, it saves time, prevents chaos, and sets you up to succeed.
So don’t leave it to chance. The platforms might cover part of the bill, but you’re still the one running the show. And knowing what’s yours to handle? That’s just good business.
