Taxing Delivery Charges for Meals: The Latest Delivery Model

Overview


In Depth


Stephen Kranz, Diann Smith, Catherine Battin, and Mark Yopp wrote this bylined article to discuss the rapidly emerging issue of taxing delivery charges for meals (especially when ordered online), including how sales tax is typically imposed on those charges and compliance tips for restaurants. In such transactions, the authors wrote that “the risks of over-collecting or under-collecting sales tax on the delivery charges” means companies involved must “carefully review the rules in various jurisdictions to ensure compliance and avoid unnecessary tax risks.”