Sales tax paid twice on delivery orders
Am I paying sales tax twice on delivery-app orders?
Updated · Checked against primary sources
The short answer
You may be, if your state makes the delivery platform the marketplace facilitator and your sales tax return still includes those orders as taxable. It happens when marketplace orders flow into the POS and general ledger with their tax, and nobody deducts them on the return. Compare the tax the platform says it remitted with the tax you reported on the same sales.
Key takeaways
- The overlap: platform remits the tax, restaurant reports the same sales as taxable.
- Common cause: delivery orders reach the POS untagged, often through middleware, so they look like in-house sales.
- It also runs the other way now: taxes DoorDash passes back in payouts are the restaurant's to remit.
The three-report check
Run it for one month in each state you operate in; if the numbers overlap, run it for every open period.
- The platform's tax report: tax remitted by the platform, by jurisdiction.
- Your POS tax summary: tax marked remitted by third party versus by the restaurant.
- Your filed sales tax return: gross and taxable sales, and whether a marketplace deduction was taken.
Frequently asked questions
- Can I get the overpaid tax back?
- Usually through the state's refund claim or amended return process, within that state's refund window. The refund is limited to tax you actually paid and did not pass on, and some states require proof the restaurant bore the tax.
Run your own numbers
Free leak scan
Find out what your restaurant is owed
Send exports, not logins: processor statements, payout reports, delivery-app CSVs and payroll summaries. We return a written list of what looks recoverable, what each item is worth, and which deadlines are still open. If something is worth pursuing, we quote the recovery before you commit to anything.
Request a free leak scanRelated questions
- Delivery sales taxDo restaurants pay sales tax on DoorDash orders?
- Delivery sales taxHow long do you have to claim a sales tax refund?
Go deeper
- GuideDoorDash Sales Tax: Are Restaurants Paying Twice?In most states DoorDash, Uber Eats and Grubhub remit sales tax on your delivery orders. If those sales also hit your return, you paid twice. How to check.
- GuideMarketplace Facilitator Sales Tax by State, 2026Does DoorDash, Uber Eats or Grubhub remit sales tax for restaurants in your state, and since when? A state-by-state table from each platform's own list.
- GuideHow to Claim a Restaurant Sales Tax RefundOverpaid sales tax on delivery-app orders? Refund deadlines run 3 to 4 years by state. The forms, the evidence states ask for, and a step-by-step claim.
Terms on this page
- Marketplace facilitator
- A platform, such as DoorDash or Uber Eats, that a state makes responsible for collecting and remitting sales tax on sales it facilitates. Where it applies to restaurant orders, the restaurant should not remit the same tax again.
Sources
- Cherry Bekaert: Potential tax refund for restaurants using third-party delivery
- Toast Support: Understanding marketplace facilitator laws
- DoorDash: US merchant marketplace facilitator FAQ
Cite this page
Pavado, “Am I paying sales tax twice on delivery-app orders?”, https://www.pavadotech.com/restaurants/questions/am-i-paying-sales-tax-twice-on-delivery-app-orders, updated 2026-09-23.