Tax Rate Section of Sales Summary

[pizzaplacesf]

Under the Tax Rate section of our sales summary report (underneath Tax and Non taxable), all of a sudden about 10 days ago a line item shows up that says Marketplace Facilitator Taxes Not Paid and there’s a little info icon to click on that explains  : the tax amount was calculated, but not paid by your online ordering providers who are designated as Marketplace Facilitators and is not included in the amounts above. Please refer to your provider for more information.

The amount that shows up in that line item, coincides with DoorDash delivery amounts which we started using about four months ago, but this line item just started appearing more recently.
Anyone have experience with this?

[Ttillman]

I have similar questions about the tax set up on delivery orders.  Every time I have tried to ask Toast, I get the standard 'we recommend working with an accountant and/or tax expert for questions' response, but I want to know how the tax should be set up in Toast for states where Marketplace Facilitator is in effect.  We use Compeat & the tax total that gets funneled into Compeat from Toast includes tax on delivery orders where the delivery companies are paying the taxes on our behalf, so basically our tax liability account is overstated for these taxes that we don't have to pay, and we have to manually adjust out what is paid by Door Dash, Uber & Grub Hub.  How should it be set up in Toast so that this tax does not flow through into our accounting software?

[davepeters]

Did you find a solution to this issue?  I am relatively new to Toast and realizing Toast is paying the Marketplace Facilitator Taxes for online ordering through the Toast app but like you said the tax liability that comes over to Quickbooks is including the amount Toast is paying.  We are using Shogo to push the Sales Reports over daily but wasn't sure if there was a simple way to break this out or have the online sales come over as non-taxable?

[Ttillman]

Unfortunately, I haven't heard anything.  I have asked numerous times for guidance on how to set this up so that we don't have to manually adjust for these, but have never gotten an answer.  On top of that, they recently, changed how the Door Dash fees were being passed on.  They were billed monthly, but now Toast takes them out of the daily settlement.  So again, we have to make manual adjustments for every day & every location (which for us is over 30!) in order to reconcile the bank payment to the posted sales.  It doesn't seem like they really think these changed through and how they will affect the user before they make them.  Very frustrating!  

[BotanicalFare]

This is typical of Toast. I have tried to get help many times and I am told all the time to talk to my tax accountant. The issue is I want to understand how Toast is apply their rules to the sales and tax reporting. How would any of our tax advisors have any idea how Toast is implementing these is their application. Biggest issue and waste of significant accounting resources trying to back engineer Toast reporting. Even toast CSR can't figure it out. Wait we will give it to level II. Good luck hearing back from them.

[Rob]

Hey @Ttillman, I'll create a support case to see if it's possible to modify the information sent to Compeat during the export process. It might be worth contacting Compeat to learn more about how the information is extracted and if they can adjust any parameters to help resolve the issue.