Sales tax on food delivery sales is a moving target

Delivery is quickly becoming an indispensable segment of food sales. With different delivery companies entering the market, restaurant owners need to be careful that they are keeping track of who is remitting sales tax on delivery sales each month.

The best way for McDonald’s owner/operators to keep up with this is to review the delivery summary reports. These reports will state whether or not the delivery company has remitted the taxes.

Staying on top of this is important because states have different requirements and the various delivery companies are continually updating their policies and procedures. It can be easy to lose track of which company is remitting sales tax and if any one has changed how it handles this. Issues can arise if both the owner/operator and the delivery company remit sales tax, resulting in a double payment. Likewise, sales tax remittance can fall through the cracks if an owner/operator mistakenly thinks a delivery company is remitting the tax.

This issue is complex and ever-changing. We download delivery reports each month for our clients and have a team dedicated to tracking states’ laws and delivery companies’ activities. Please let us know if you would like us to provide this service to you.

Robin Tignor, CPA, is an Accounting Manager with our firm, specializing in sales tax. Robin can be reached at rjt@antarescpas.com.