Online Restaurant Marketplaces Not Making Retail Sales in Virginia

Tuesday, November 28th, 2017

Close-up of person on tablet ordering food.

The Virginia Department of Taxation recently ruled that sales by an online restaurant marketplace were not retail sales for tax purposes.

The online marketplace was a website that provided customers with the ability to browse and purchase food from local restaurants. All charges included applicable taxes. The marketplace had no control over food preparation, prices, or which menu items were offered.

Virginia taxes retail sales of tangible personal property, including prepared food from restaurants. For a "sale" to take place, there must be a transfer of title to property. The ruling found that the transfer of title occurs between customers and restaurants, not customers and the marketplace. As a result, it was determined that the marketplace was providing payment processing and online ordering services, but was not making retail sales of food. Restaurant Marketplaces Not Making Retail Sales in Virginia

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

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