Who is Submitting & Paying State Sales Tax on the New Online Order Processing Fee?

[briantsiv]

Hi,

I have received my first online order charging the customer the $.99 Online Order Processing Fee.  The State of Utah requires Sales tax to be paid for any fee that is not "optional" for the customer.  Is Toast submitting and paying the sales tax on this fee to the State of Utah?  What are the Laws for other States?  As a business this is required.  For example DoorDash, Uber, GrubHub, etc collect the Utah Sales Tax and send it to my account and I report this sale and therefore submit the required Sales Tax to the State of Utah.  This seems to be a very large liability to Toast POS users. 

-Briant

[Rob]

Hey @briantsiv Thanks for your question. Toast does not default sales tax on the Order Processing Fee. You have the ability within your configuration setting to configure sales tax how you choose. Toast does not provide legal, tax, or other professional advice. You are responsible for your own compliance with applicable laws and regulations. We suggest contacting your attorney or other relevant professional advisors for advice specific to your circumstances.

[ZK]

I am also curious about this for New Jersey sales tax.  As the restaurant never sees this money, I would think Toast would be responsible for collecting any applicable sales taxes & remitting that to the state.  This is Toast's income, not the restaurants.  I've submitted a request for guidance on this to the New Jersey Division of Taxation & will post the results if/when I hear back from them.

[corey_akc]

I am also located in NJ and looking forward to what you find out. Looks like lots of other people in this thread have heard back that Toast is responsible. 

[ZK]

I haven't heard back yet, but I would encourage you to submit an inquiry to the NJ Division of Taxation at https://www.state.nj.us/treasury/taxation/contact.shtml.  I am not an accountant, nor lawyer, so you should not base your decision on how to handle this fee upon what I hear from the the state.  I will post their reply once it's received.