Sales tax is typically applied to transactions for tangible goods and certain services that occur between a merchant and a consumer. Merchants act as agents of state government collecting sales tax from consumers and remitting payments to the proper taxing authority.
Today many restaurants are using 3rd Party Order Apps (3POA) such as GrubHub and EAT24 to attract new customers and increase their bottom lines. However, 3POA apps have the potential to create huge sales tax liabilities for the business if not handled correctly. This can result in costly fines and penalties that come straight out of the owner’s wallet and in the worst cases these excessive fines can be fatal to a business if left unchecked.
Co-Founder David Joseph presented as part of Greenlight Maine's third season on December 30, 2017. Greenlight Maine is a business competition TV show airing on NBC Saturday nights at 7:30pm, with a grand finale airing in June.
Calculating sales tax seems quite simple on the surface. Set your CLOVER to the correct tax rate and forget about it. But when you dive below the waves of day to day commerce, sales tax can get confusing.
Calculating sales tax seems quite simple on the surface. Set your POS to the correct tax rate and forget about it. But when you dive below the waves of day to day commerce, sales tax can get confusing.
WHAT IS SALES TAX? Sales Tax is a tax on goods and services collected by merchants from their customers. If you are a merchant and you sell things, you are required by law to collect sales tax. This is a general description with many exceptions and rules around the taxability of goods and services from state to state.
Merchants who use sales tax as working capital rarely take time to understand the true cost and potentially catastrophic legal pitfalls until it’s too late. You may be wondering, why isn’t it OK to use sales tax to operate the business until it’s time to remit that money to the state?
DAVO Technologies, the fastest growing provider of daily sales tax cash management automation has successfully closed a venture round of strategic investment led by Anania & Associates Investment Company.