What is a marketplace facilitator?
A marketplace facilitator is a platform (like DoorDash) that connects customers and merchants to process sales. In some jurisdictions, tax laws require the marketplace facilitator, not the merchant, to collect and remit certain taxes on sales made through the platform.
How do marketplace facilitator laws affect my taxes?
In some Canadian jurisdictions, marketplace facilitator laws shift responsibility for remitting specific taxes from merchants to DoorDash.
When these laws apply:
DoorDash collects tax from the customer at checkout
DoorDash either remits the tax directly to the tax authority or passes the tax to you in your payout, depending on the tax type and jurisdiction
Important exceptions
Saskatchewan PST on liquor sales is always passed to merchants
GST, HST, and QST are always passed to merchants and aren't remitted by DoorDash
Where does DoorDash remit tax directly in Canada?
DoorDash is registered to collect and remit certain provincial sales taxes directly to tax authorities for orders made through the DoorDash platform in select Canadian jurisdictions.
DoorDash may remit the following taxes directly, where required by law:
Provincial sales tax (PST)
Retail sales tax (RST)
Jurisdictions | Tax | Date Implemented | Merchants |
|---|---|---|---|
British Columbia | Provincial Sales Tax (PST) | September 1, 2022 | All merchants |
Manitoba | Retail Sales Tax (RST) | August 1, 2022 | All merchants |
Saskatchewan | Provincial Sales Tax (PST) | August 1, 2022 | All merchants |
How do these tax rules affect my payouts?
Your payouts reflect how taxes are handled for each order:
Included in your payout: Taxes that DoorDash collects and passes to you (for example, GST, HST, QST, and applicable PST/RST)
Excluded from your payout: Taxes that DoorDash collects and remits directly to tax authorities as a marketplace facilitator
Where can I see taxes DoorDash remitted or passed to me?
You can view tax details in the Merchant Portal using the Transactions and Payouts reports within DoorDash Reporting. Here are some of the terms you'll see:
Transactions report (order-level)
Tax subtotal: Adjusted subtotal based on customer discounts
Subtotal tax passed to Merchant (federal/harmonized): GST or HST passed to you
Subtotal tax passed to Merchant (provincial): PST, RST, or QST passed to you
Subtotal tax remitted by DoorDash to tax authorities: Taxes DoorDash remitted directly
Payouts report (payout-level)
Subtotal tax remitted by DoorDash to tax authorities: Total taxes DoorDash remitted directly for that payout period
Do marketplace facilitator laws affect GST, HST, or QST?
No. Marketplace facilitator laws do not currently affect:
Goods and services tax (GST)
Harmonized sales tax (HST)
Quebec sales tax (QST)
DoorDash always passes these taxes to merchants.
What DoorDash products does DoorDash remit PST or RST for?
Where marketplace facilitator laws apply, DoorDash collects and remits PST or RST for sales made through:
Marketplace
Self-Delivery
Flexible Fulfillment
Online Ordering
DoorDash does not collect or remit tax directly for:
Drive On-Demand
Who is responsible for setting tax rates on my menu items?
DoorDash sets tax rates for menu items in jurisdictions where it acts as a marketplace facilitator. Merchants are responsible for setting tax rates in all other jurisdictions.
Does this change for POS integrations?
No, POS integrations don't change how taxes are calculated or remitted. DoorDash continues to handle tax calculations where applicable, and reporting remains available in the Merchant Portal.
Can DoorDash provide written confirmation of tax remittance?
Yes. You can request a confirmation letter by contacting Merchant Support.
How should I report my taxes?
DoorDash can't provide tax or legal advice. You're responsible for reporting taxes according to your local requirements. We recommend consulting a qualified tax professional.
What if my business is outside Canada?
United States: See the US marketplace facilitator tax guide for details
Australia or New Zealand: Marketplace facilitator laws don't apply — merchants are responsible for remitting all taxes on sales made through DoorDash
Still need help?
Submit a help ticket through the Merchant Portal for support with tax reporting or documentation.
