Hi @Dimitri2. Actually, what Square is doing is in compliance with IRS and tax authority regulations. If we use third-party delivery apps, our gross sales are the same as if those orders were picked up in our stores. The services charges from Uber, etc, are expenses that must be accounted for elsewhere in our accounting system.
At the end of the year, Uber, etc, will report gross sales BEFORE they have taken out their fees. This is because they are our sales, not their, and we are responsible for taxes on them and so forth. When I used those services I always made sure that the total of all of them equaled what was in my Other column as reported by Square. That was my balance to be sure I didn’t miss something.
This is no different than the way Square handles card processing fees. Those fees are expenses, not changes to our sales. So Square reports all sales BEFORE those fees are deducted because that is what the law requires. It works the same if we are using third-parties to deliver our products. The sales income is still totally our responsibility.
Ultimately, yours is an accounting question. I would recommend sitting down with your accountant/CPA to be sure that your books are set up correctly. But Square is doing this exactly in compliance with existing laws and regulations.
