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New State Sales Tax Law Affecting “Marketplace Facilitators” – Food Deliveries
In July 2019, a new state law went into effect that requires “marketplace facilitators” (like UberEats, Grubhub and DoorDash) to collect Sales Tax from customers and send that straight to Richmond. This law does not affect the City’s Meals Tax.
Restaurants are still required to collect and remit the City’s Meals Tax directly to the City each month. This is based on the purchase price of the meal from the restaurant, even if delivered by a marketplace facilitator.
If a restaurant uses a marketplace facilitator for delivery and the marketplace facilitator collects the full amount from the customer, the marketplace facilitator should collect the City’s Meals Tax on the purchase price of the meal and remit that amount to the restaurant; the restaurant will then remit the Meals Tax to the City on its normal monthly tax form along with the Meal’s Tax collected directly from patrons in the restaurant.
More information on this new law can be found on the State’s Department of Taxation website.
Taxable Gross Receipts - COVID Exceptions
Pursuant to the Code of Virginia and the Virginia Administrative Code, extraordinary COVID-19 loans/grants such as Economic Injury Disaster Loans (EIDL), Paycheck Protection Program (PPP) loans, and AEDP Back-2-Business (B2B) and Weather grants can be excluded from taxable gross receipts when filing the City’s Business, Professional and Occupational License (BPOL) tax returns.
Va. Code § 58.1-3732 (A)(4)