Note: This article discusses a feature not launched to all customers. Please contact tax-center@tockhq.com to learn more.

Marketplace Facilitator sales tax FAQ

For customers in certain states, Tock takes sales tax off your plate by automatically collecting and remitting sales tax in accordance with required Marketplace Facilitator laws. The laws vary from state to state, but generally require that Tock collect and remit state and local sales taxes, including taxes on food, beverages, and alcohol, for purchases made through our platform.

The following questions pertain only to the states where these marketplace facilitator laws are applicable and where Tock has begun collecting and remitting sales taxes, shown in the list below:

Where is Tock remitting sales tax?

Tock is currently collecting and remitting sales tax for purchases made through our platform in the following states. New rules impact reservations made after the effective date.

Is Tock remitting sales tax for everyone?

It is a legal requirement for Tock to collect and remit sales tax for all online sales of food, beverages, and prepaid events in the states listed above. Every business on Tock in a state with applicable Marketplace Facilitator laws must comply fully with the state guidelines.

Can my business opt out of Tock sales tax remittance?

No. There's no option for businesses to opt out.

Do I still have to pay any sales tax myself?

Yes, but only for sales that occur outside of Tock. The Sales tax report will give you a total of marketplace sales on our platform that you or your accountant can use to calculate your tax liability.

What do I need to do?

  • For all new experiences, add-ons, and menu items, you will need to select a tax category during creation.
  • If you previously included sales tax in prices (rather than setting tax rates), you may want to consider reviewing your prices as these will have tax added automatically when this change rolls out in your location.
  • If you have previously used tax library taxes to collect fees, you will need to switch to our flat-rate fees or percentage service charge features.

Do I need to set my own tax rates?

No. Tock will automatically set tax rates (and update them) based on your location to comply with state and local rates. Further, it is now Tock’s responsibility to collect and remit sales taxes, not yours. You will only need to make sure that purchasable items are categorized accordingly going forward.

How will this impact what I already have configured in Tock?

Tock is responsible for setting, collecting, and remitting sales tax in the marketplace facilitator states listed above. Tock works with third party tax libraries to match tax rates to food, beverages, events, and other retail items based on your categorization.

Will this impact my guests?

This should have no impact on your guests.

How are service charges handled?

Mandatory service charge tax rates are determined by the experience with which they are associated.

How will I know when Tock has remitted my sales tax?

Tock will surface all taxes collected and remitted in the Sales tax report in your Tock Dashboard. Additionally, we will email the account owners a monthly summary of marketplace sales and taxes paid.

What should I do if I don’t think my sales tax is being properly applied?

We’ve taken every measure to ensure that the tax rates are correct. However, if you believe that a rate is being misapplied, check that the item is properly categorized. If there is still a discrepancy, please contact Tock’s Hospitality team.

Was this article helpful?
23 out of 45 found this helpful