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

briantsiv
Soup II

‎06-16-2023 04:58 PM

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

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10 REPLIES 10

briantsiv
Soup II

‎07-03-2023 08:03 AM

Because the $.99 is revenue for Toast and not the restaurant they are required to collect, report and submit sales tax to the State.  All mandatory Service Fee's are taxable in Utah.