Delivery Services Face Patchwork of Sales Tax Collection Duties

Aug. 11, 2021, 8:45 AM

The ripple effects of the Supreme Court’s groundbreaking Wayfair decision on taxing sales across state borders is now impacting third-party delivery services like Grubhub and Uber Eats.

All states that impose a sales tax have adopted laws tied to the South Dakota v. Wayfair ruling that spell out how marketplace facilitators like Amazon Marketplace and Etsy are required to collect and remit sales tax to the state on behalf of out-of-state merchants.

But delivery services face another degree of compliance challenges due to more inconsistencies and a lack of clear guidance on a state-by-state basis.

The first challenge facing them ...

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