Third Party Apps orders are received on devices separate from your POS. Managing these apps through your POS creates better workflows and will save you lots of time and money when paying your sales tax. Make sure you understand how the sales tax is collected and which party is responsible for remitting the sales tax to the state. Rules vary by state.
In Florida, Georgia, Michigan, Utah, Virginia and Washington, DC, 3rd Party Apps such as Grubhub, Ubereats and Doordash are responsible for paying sales tax directly to the state. YOU SHOULD NOT PAY SALES TAX ON THESE ORDERS!!
It is very important to setup your POS correctly to ensure you are not double pay sales tax on 3rd Party Apps. If you are paying sales tax on 3rd Party Apps it is coming out of your own pocket.
POS SETUP FOR 3rd Party Apps in Florida, Georgia, Michigan, Utah, Virginia and Washington, DC:
- Create a “Category” named for each 3rd party app – (Typical Categories are “Dine In” “To-Go”)
- Assign the new category 0% tax rate or NON-TAXABLE.
- Create a Tender Type named for each corresponding 3rd party app – (Typical tender types are “Cash” Credit/Debit”)
As orders are received for each 3rd Party App, enter them under the appropriate App Category. When the order is complete, close it under the tender type associated with the app.
By assigning a 0% tax rate to the Category, you will have recorded the 3rd Party App sales as non-taxable (0%) sales and tracked it in your POS for the appropriate app.