| This article assumes that you do not sell food and
beverages for consumption at your place of business (that is, tables, chairs, and other
seating facilities are not provided for eating food). This article also assumes that you
sell food and beverages individually (you do not sell two or more items together for a
single price). |
There is some confusion among convenience stores, mini
marts, and liquor stores regarding the taxability of heated foods, hot drinks, and
prepackaged foods that are heated in a microwave by the store clerk or customer. The
following information should answer most of those questions.
| Sales of heated foods. |
| Sales of egg rolls, pizza slices, hot dogs, burritos, soup and other food
items that are sold in a heated condition are taxable. These foods are typically displayed
in heated units or under heat lamps. Sales of hot food are taxable even though they are
sold to go. |
|
| Sales of microwaveable prepackaged foods. |
| Sales of refrigerated or frozen burritos, sandwiches, microwave popcorn,
soups, and so forth are taxable if the items are heated in a microwave oven that is
accessible only to store employees. It is presumed that employees, rather than customers,
will heat the food and sell it in a heated condition. If the microwave is located in a
place that is accessible to customers, the sale of the cold prepackaged food is not
taxable. It is presumed that the food will not be sold in a heated condition and that the
customer, rather than employees, will use the microwave oven to heat the food. |
|
| Sales of hot drinks. |
| Sales of hot beverages such as coffee, hot chocolate, and hot tea, are
not taxable when they are sold to go and for a separate price. |
For more in formation about how tax applies to your food sales, see
publications 24, Tax Tips for Liquor Stores and 22, Tax Tips for the Dining & Beverage
Industry.
|
