Marketplace Collection Laws Present Unique Challenges for the Restaurant Industry | Modern Restaurant Management | The Business of Eating & Restaurant Management News

The pandemic has changed the physical and economic environment in which restaurants operate. Although food delivery has long been popular for certain types of food, pandemic restrictions and consumer preferences hastened the expansion of food delivery for almost all food and meals. Food delivery can be done either through the restaurant itself or through unrelated third-party online food delivery services.

Restaurants without pre-pandemic infrastructure for deliveries are now increasingly relying on regional or national online or app-based food delivery services. Delivery, particularly through these online food delivery services, unearth new challenges for restaurants’ compliance with state sales tax laws.

A. Marketplace Collection LawsMarketplace collection or “marketplace facilitator” laws require that certain marketplaces—such as online platforms connecting retailers with customers—collect and remit sales tax on behalf of the retailers or restaurants (marketplace…

Jonathan Feldman

Jonathan Feldman is a partner at Eversheds Sutherland (US), and helps clients stay on top of state and local tax issues that directly impact their businesses. With a strong background in the manufacturing, telecommunications, transportation, entertainment and retail industries, he counsels clients in all areas of state and local taxation including income, franchise, sales and use and property taxes.

Alla Raykin

Alla Raykin is an associate at Eversheds Sutherland (US), and advises clients on a full range of state and local tax matters, including litigation, controversy, policy, and planning. She counsels on all state and local tax types, including sales and use, income, franchise, and property taxes.

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Jonathan Feldman

Alla Raykin