Just about every restaurant is using Third Party Order Apps such as GrubHub, Uber Eats and DoorDash to attract new customers, increase orders and boost their bottom lines. However these apps can be difficult to manage and have the potential to create costly sales tax liabilities for the business if not managed correctly. This can result in fines and penalties that come straight out of the owner’s wallet and in the worst cases excessive fines can be fatal to a business. State tax auditors are well aware of the challenges associated with managing these apps and they know exactly where to look in an audit. It behooves every restaurant owner to make sure they manage these apps correctly and efficiently to gain the maximum ROI and avoid wasting valuable resources.
These Third Party Order Apps create several problems because they exist outside the restaurant’s POS system.