This article will help you understand how state-by-state "marketplace facilitator" laws impact you.
Marketplace Facilitator Laws
Many states have new tax laws for marketplace facilitators – like ezCater. Each state defines “marketplace facilitator” differently, but generally it is a marketplace that facilitates sales of goods between sellers and customers. Where these laws apply to us, they may shift the responsibility of remitting state sales tax from you (the seller) to us (the marketplace).
In all states where ezCater orders are taxable, we collect taxes as we always have. This hasn’t changed. You are still responsible for remitting all locally administered taxes. ezCater payments to you will continue to include these taxes.
In some states, as of June 1, 2020, we will also remit taxes on your behalf. ezCater payments to you will no longer include these taxes. See state-by-state details.
Orders for which we remit sales tax
In states where ezCater is responsible for remitting sales tax (based on the state of the location fulfilling the order), we remit for every order where we process the customer’s payment.
Tax-exempt orders
Nothing changes for tax-exempt orders. ezCater does not charge, collect, or remit taxes on these orders.
Customer experience
Nothing changes. Customers pay the same taxes as always.