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Marketplace facilitator tax payments

Note

The Toast platform functionality described in this section is in limited release.

For Toast platform restaurants, a marketplace facilitator is a business that:

  • Takes guest orders, processes guest payments, and then directly submits those orders to a Toast platform restaurant for fulfillment.

  • Is required by a taxing authority to pay tax amounts for the orders they process.

For example, a restaurant ordering service like Grubhub™, Uber Eats™, or DoorDash® that accepts orders for a large number of restaurants might take guest orders and payments and then submit the order to the Toast platform for fulfillment at a Toast platform restaurant. The ordering service receives the guest payment and then remits the applicable tax amounts.

A marketplace facilitator might not remit all tax amounts for a Toast platform order. For example, a marketplace facilitator might remit all state tax amounts but not remit local tax amounts. You can determine whether a marketplace facilitator has remitted tax amounts for your restaurant's orders by checking the tax information in Toast platform reports. For more information, see Tax payment reporting information. Marketplace facilitators might calculate tax amounts differently than the Toast platform does.

Important

The tax remittance and tax amount reporting information in the Toast platform is not intended to be guidance for complying with tax requirements. Seek qualified tax guidance if you need assistance.

The marketplace facilitator tax amount behavior described in this section only applies to orders that are directly submitted from the marketplace facilitator to the Toast platform. Your restaurant might receive orders that originated at a marketplace facilitator but then passed through another order handling service before being digitally submitted to the Toast platform. For example, if your Toast platform restaurant uses a direct integration with a marketplace facilitator ordering partner, the orders you receive through that integration are included in marketplace facilitator tax amount handling and reporting. Orders you receive indirectly from a marketplace facilitator, through a different ordering service, are included in reporting using tax rates configured in the Toast platform and are not included in marketplace facilitator reporting.

If your restaurant uses a Toast API integration that gets information about orders, the order information that you get from Toast APIs includes information about tax amounts remitted on behalf of your restaurant. For more information, see Marketplace facilitator tax information.

The following sections provide more information about marketplace facilitator tax payments: