Multi-State – DoorDash And Uber Eats Aren’t Collecting Sales Tax On Delivery Fees In Some States

The food delivery company Grubhub said it has collected hundreds of millions in taxes for delivery and service fees in dozens of states since at least 2011. But Recode has found that in some of those same states, Grubhub’s top rivals in the delivery space, including DoorDash, Postmates, and Uber Eats, don’t appear to be collecting a cent. This discrepancy puts those rivals in a precarious position if regulators take notice and object.

Several tax experts Recode interviewed said food delivery app companies’ tax practices could raise legal concerns. The sales taxes in question are on fees that can amount to as much as a third of the total price of food orders — or at least $120 million per year of taxable dollars on the sales of major food

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by shirin ghaffary
november 20, 2019