Paying sales tax is part of doing business for restaurants, but not all restaurants are adept at collecting it. With this in mind, Davo Technologies, a provider of an automated sales tax collection application, has integrated its app into Heartland Payment Systems Inc.’s POS platform for restaurants.
The Davo app gathers all transaction data from the Heartland Restaurant POS management platform daily and automatically identifies transactions on which sales tax must be paid. Next, the app tallies the total sales tax owed, removes the amount from the restaurants’ card receipts, and places those funds in an escrow account. When the sales tax is due, which is either monthly or quarterly, Davo files the appropriate tax forms with the taxing body on behalf of the restaurant and sends the money due.
“There is zero benefit to restaurants to collecting sales tax, but potentially significant repercussions if they don’t properly collect it, which is why restaurants worry about it,” says David Joseph, co-founder of Davo Technologies and a former restaurateur. “Restaurants want technology that can help simplify business processes, of which sales-tax collection is one.”
Currently, 6,000 merchants use Heartland Restaurant POS. Restaurants can trial the Davo app free for the first month and pay $39.99 per month per location after.
In addition to integrating its app into Heartland’s platform, Davo has integrations with other cloud-based POS platform providers including Clover Network Inc., Square Inc., Toast Inc., Revel Systems, and Poynt Corp.
“Internal research shows that 55% of small merchants are behind on collecting sales tax,” says Joseph. “The Covid pandemic has exacerbated the problem because of the cash crunch caused from the drop off in business. Automating the collection of sales tax can help alleviate that pain point.”
About 60% of Davo’s customers are in the restaurant and food service business.