Marketplace facilitator tax information

For orders submitted by a marketplace facilitator, the prices and tax amounts are either populated by the Toast platform, or provided by the marketplace facilitator.

About marketplace facilitators

For Toast platform restaurants, a marketplace facilitator is a business that:

  • Takes guest orders, processes guest payments, and then directly submits those orders to a Toast platform restaurant for fulfillment.

  • Is required by a taxing authority to pay tax amounts for the orders they process.

For example, a restaurant ordering service such as Grubhub™, Uber Eats™, or Doordash® accepts orders for a large number of restaurants. The service might take guest orders and payments and then submit the order to the Toast platform for fulfillment at a Toast platform restaurant. The ordering service receives the guest payment and then remits the applicable tax amounts.

For more information about marketplace facilitator orders in the Toast platform, see Marketplace facilitator tax payments.

Indicating the source of prices and tax amounts

The orders API return data indicates whether the prices and tax amounts were populated by the Toast platform, or specified by the marketplace facilitator. It also indicates whether the marketplace facilitator collected and remitted the taxes on behalf of the restaurant.

In the appliedTaxes object, the type value indicates whether the value came from the Toast platform or was calculated by the marketplace facilitator:

  • If type is EXTERNAL, then the prices and tax amounts were provided by the marketplace facilitator. The prices should match the current menu prices for the restaurant. The tax amounts are usually calculated by a tax partner.

  • If type is any value other than EXTERNAL, then the prices and tax amounts were calculated by the Toast platform.

The facilitatorCollectAndRemitTax value indicates whether the marketplace facilitator remitted the tax on behalf of the restaurant. If set to true, then the marketplace facilitator remitted the tax.

Example return data with Toast platform prices and tax amounts

The following example shows the orders API return data for a marketplace facilitator order where the Toast platform calculated and populated the prices and tax amounts.

{
  "entityType": "Order",

  [contents omitted]

  "checks": [
    {
      "entityType": "Check",

     [contents omitted]

      "selections": [
        {
          "entityType": "MenuItemSelection",

          [contents omitted]

          "appliedTaxes": [
            {
              "guid": "26aa5680-3233-4d3b-9504-051a622ae76d",
              "entityType": "AppliedTaxRate",
              "taxRate": {
                "guid": "d5b88c05-1348-42ef-b1d3-577a83d70a80",
                "entityType": "TaxRate"
              },
              "rate": 0.0625,
              "name": "State Tax",
              "taxAmount": 0.31,
              "type": "PERCENT",1
              "facilitatorCollectAndRemitTax": true2
            }
          ],
          "itemGroup": {
            "guid": "881472e6-dd94-48c6-b5c6-25e51a864208",
            "entityType": "MenuGroup",
            "externalId": null
          },
          "item": {
            "guid": "9c59d4ab-8242-450f-8f36-b16e1b3ab802",
            "entityType": "MenuItem",
            "externalId": null
          },

          [contents omitted]

          "receiptLinePrice": 5,
          "tax": 0.31,

          [contents omitted]

        }
      ],

      [contents omitted]

      "taxAmount": 0.31,

      [contents omitted]

   }
  ],

  [contents omitted]

}

1

Any value other than EXTERNAL indicates that the marketplace facilitator used the prices and tax amounts calculated by the Toast platform for the order.

2

Indicates that the marketplace facilitator remitted tax amounts on behalf of the restaurant location.

Example return data with specified prices and tax amounts

The following example shows the orders API return data for a marketplace facilitator order where the marketplace facilitator specifies the prices and tax amounts.

The prices should correspond to the prices from the restaurant menu. The tax amounts are usually calculated by a tax partner.

IThe marketplace facilitator submits those prices and tax amounts to the Toast platform.

{
  "guid": "cdef26f4-68bd-42a1-a1e0-be43c4fb52f0",
  "entityType": "Order",

  [contents omitted]

  "checks": [
    {
      "entityType": "Check",
 
      [contents omitted]

      "selections": [
        {
          "entityType": "MenuItemSelection",

          [contents omitted]

          "appliedTaxes": [
            {
              "guid": "688cdc21-ab92-427e-9837-c981cc2d55c5",
              "entityType": "AppliedTaxRate",
              "taxRate": {
                "guid": "a19eaf97-c0b9-47bf-9af2-ed833c3e4051",
                "entityType": "TaxRate"
              },
              "rate": null,
              "name": "Marketplace Facilitator Taxes Paid",
              "taxAmount": 0.1,
              "type": "EXTERNAL",1
              "facilitatorCollectAndRemitTax": true2
            }
          ],
          "itemGroup": {
            "guid": "881472e6-dd94-48c6-b5c6-25e51a864208",
            "entityType": "MenuGroup",
            "externalId": null
          },
          "item": {
            "guid": "9c59d4ab-8242-450f-8f36-b16e1b3ab802",
            "entityType": "MenuItem",
            "externalId": null
          },
 
          [contents omitted]

          "receiptLinePrice": 20,

          [contents omitted]

        }
      ],

     [contents omitted]

      "taxAmount": 0.1,

     [contents omitted]

    }
  ],

  [contents omitted]

}

1

The value EXTERNAL indicates that the marketplace facilitator specified the prices and tax amounts for the order.

2

Indicates that the marketplace facilitator remitted tax amounts on behalf of the restaurant location.