In this Article:

What is marketplace facilitator?

In general terms, a marketplace facilitator is a platform, that connects buyers and sellers to help facilitate the sale of various goods and services, including food, drinks, groceries, and other retail items.

Given the way marketplace facilitators are defined in certain states’ tax laws, ChowNow and other third-party providers like Uber Eats, DoorDash, and Grubhub may be considered marketplace facilitators for the purposes of third-party sales facilitated through such provider’s relevant marketplace.

How do marketplace laws impact tax?

In some jurisdictions, there are laws that change the party that is responsible for remitting tax on sales made between buyers and sellers on a marketplace facilitator’s platform. These laws shift the responsibility for tax remittance from merchants to ChowNow, as the marketplace facilitator.

As an example, for orders where ChowNow is classified as a marketplace facilitator under applicable laws, ChowNow is responsible for collecting and remitting tax to the appropriate taxing authority.

How do I know if marketplace facilitator laws affect my restaurant?

Information about marketplace facilitator laws can be found on most state Department of Revenue sites.

Is ChowNow classified as a marketplace facilitator?

ChowNow is classified as a marketplace facilitator for orders originating from eat.chownow.com and the ChowNow App in applicable jurisdictions.

What about transactions outside of eat.chownow.com and the ChowNow App?

Transactions through other ChowNow ordering platforms (such as Order Direct, Order Better Network, and Branded Mobile Apps) are not subject to marketplace facilitator laws. Tax collection and remittance for transactions completed outside of eat.chownow.com and the ChowNow App remain the responsibility of the restaurant.

How can I view taxes collected and remitted by ChowNow on orders where ChowNow is classified as a marketplace facilitator?

To view ChowNow marketplace facilitator tax amounts, run an Accounting report on the ChowNow Dashboard.

You will see a new column “MPF Tax Withholding” if your location received orders where ChowNow is classified as a marketplace facilitator.

Why do tax amounts for marketplace facilitator orders look different from other orders?

To comply with marketplace facilitator tax laws, ChowNow is required to independently determine the tax rates applicable to items sold for orders where ChowNow is classified as a marketplace facilitator. For these orders only, the tax rates configured by you on the ChowNow Dashboard are not used to calculate tax amounts. Instead, ChowNow uses an automated system to assign applicable tax rates to items sold, which may differ from the tax rates configured by you.

If you believe that ChowNow has incorrectly assigned tax rates to items sold on marketplace facilitator orders, please contact ChowNow Support for assistance.

Can I refund orders where ChowNow is classified as a marketplace facilitator?

Yes, you can refund orders where ChowNow is classified as a marketplace facilitator with some exceptions.

You can view what refund options are available by viewing the order on the ChowNow Business Manager App.