Marketplace Facilitator FAQ
What is a Marketplace Facilitator?
Generally, a “marketplace facilitator” is defined as a marketplace that contracts with third-party sellers to promote the sale of certain tangible property, digital goods, and services through the marketplace. As a result, Uber Eats may be classified as a marketplace facilitator for third-party sales facilitated through the Uber Eats platform and Uber mobile apps.
Some marketplace facilitator laws may shift the sales tax collection and remittance obligations from a third party seller like Restaurant Partners, to the marketplace facilitator. If Uber Eats is classified as a marketplace facilitator, Uber Eats is responsible for calculating, collecting, and remitting tax on all Restaurant Partner transactions made through the Uber Eats platform in states where marketplace facilitator and/or marketplace collection legislation is enacted.
Where is Uber Eats remitting taxes?
Uber Eats is registered to collect and remit state-administered sales tax on orders made through the platform in the following states:
¹All other taxes or similar fees collected on transactions which Uber Eats is not obligated to collect, report, and remit (including but not limited to local meals & beverage taxes, and bag fees) will be passed back to Restaurants.
²Uber Eats is only considered a marketplace facilitator for facilitating sales for non-restaurant partners in these jurisdictions.
³Beginning on 7/1/2020, Uber Eats is only a marketplace facilitator for facilitating sales for partners who are not restaurants in these jurisdictions. For the period of 10/1/2019 through 6/30/2020, Uber Eats was a marketplace facilitator for facilitating sales for all partners.
⁴From 3/2/2020 through 7/31/2020, Uber Eats was not obligated to collect all other taxes or similar fees collected on transactions (including but not limited to local meals & beverage taxes, and bag fees). Therefore these taxes and fees were passed back to Restaurants during this period. Beginning on 8/1/2020, Uber Eats will begin reporting and remitting these other taxes and fees, including those listed prior.
⁵Portier, LLC is registered with the state of California and reports its sales tax under Tax Account Number 205955904
This list will be updated as Uber Eats obligations change in response to new legislation. You may be notified if changes affect your restaurant.
- Where can I see the sales taxes that Uber Eats remitted?
The sales tax Uber Eats collects and remits to the applicable tax authority is labeled “Marketplace Facilitator Tax”.
- How are locally administered taxes treated?
Uber Eats is remitting certain locally administered taxes, such as food and beverage, meals, and hospitality tax back to Restaurants. Uber Eats is not responsible for reporting and remitting taxes to local authorities that have been remitted back to Restaurants.
- Who is responsible for setting taxes rates?
In marketplace facilitator states, Uber Eats is responsible for setting applicable sales tax rates.
- How am I supposed to report my taxes?
Uber Eats is unable to provide technical, tax or legal advice to our restaurant partners on any matters. Should you need assistance with these matters, we recommend contacting the appropriate taxing authority or seeking a professional service provider.
- What if I am located in Canada?