The Taxability of Third-Party Food Delivery Services

Understanding Complex Local Rules to Determine the Responsible Party

Corey L. Rosenthal, , JD, and Scott Smith, and Latasha Lewis, , CMI

Two years into an unprecedented global pandemic, the impact of coronavirus (COVID-19) is still felt in many industries. The hospitality industry continues to be one of the hardest-hit. Although hotel occupancy is steadily rising as summer travel picks up, the restaurant industry struggles to reestablish its identity. The lack of workers, the lack of supplies, and the lack of customers all contribute. The National Restaurant Association estimates that at least 90,000 restaurant locations were either temporarily or permanently closed as of mid-2021 (The 2021 State of the Restaurant Industry Mid-Year Update, National Restaurant Association, http://www.restaurant.org).