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Restaurant Meal Delivery Business: A restaurant meal delivery business is a supplier of meals purchased in restaurants for resale and delivery. If you do not pay the tax due, you will also have to pay interest at the federal short-term interest rate (which can change quarterly) plus 4%, compounded daily. Contact our call center at (617) 887-6367 or toll-free in Massachusetts at (800) 392-6089 for more information on these rates. Anyone who sells meals subject to sales tax in Massachusetts is a meal tax provider. If a liquor licence holder operates a restaurant where meals are served, the licensee is deemed to be the seller of the meal tax, whether the meals are served by the licensee or by a dealer. Restaurant: A restaurant is a restaurant or beverage establishment (fixed or mobile, temporary or permanent) that is primarily engaged in the sale of meals at a price. These include, but are not limited to: grocery stores, markets, supermarkets: sales of a bakery, delicatessen or restaurant that is part of a grocery store, market or supermarket are taxed as described above; The sale of food (food) is not taxable. However, a supermarket salad bar where shoppers buy salads and pay by weight is a restaurant for meal tax purposes. Therefore, the salad is subject to the tax. Download Tax Foundation Fiscal Fact No. 293: Taxes on Meals in Major U.S. CitiesTourists and business travelers quickly learn that taxes on meals are sometimes higher than taxes on other goods.

The meal tax generally applies to the purchase of prepared foods that are consumed in a restaurant or similar establishment or taken “to go” for later consumption. In contrast, the sale of food (or “unprepared food”) is completely exempt from state sales tax in 30 states and the District of Columbia, and partially exempt in eight other states. Food taxes are usually levied locally, but are sometimes levied at the state level. Honor Snack Trays and Vending Machines: Honoring snack trays and vending machines that sell food are generally considered restaurants within the meaning of the meal tax. An exception is made if the tray of honor or vending machine is used to sell only snacks (food or beverages) or sweets with a retail price of less than $3.50. If the selling price of a single item sold through a tray of honor or vending machine is $3.50 or more, all sales are taxable. A restaurant that sells meals to a food delivery business must accept a Massachusetts Sales Tax Resale Certificate (Form ST-4) from that restaurant food delivery business. Once the form is accepted, the restaurant no longer needs to collect and send VAT on meals to the Commonwealth. For more information, see VAT treatment of restaurant meals resold by restaurant food delivery companies. Example: If a restaurant offers a customer two meals at the usual price of one upon presentation of a voucher, the price of the free meal is excluded from the food tax. The tax is only due on the actual amount that the restaurant charges the customer.

[1] Discounted meals: If a seller offers customers a discount on the regular price of a meal upon presentation of a voucher, the tax will only be due on the actual amount that the seller charges the customer. If a restaurant offers a customer 2 meals at the usual price of 1 on the basis of a voucher, the price of the free meal is excluded from the food tax. See 830 CMR 64H.1.4: Discounts, coupons and discounts for more information. Businesses sign up to collect food tax with MassTaxConnect. Massachusetts charges sales tax on meals sold by restaurants or part of a business that is considered a restaurant under Massachusetts law. The tax rate for meals is 6.25%. If a liquor licence holder operates a restaurant where meals are served, the licence holder is deemed to be the seller of the meal tax, whether the meals are served by the licensee or by a dealer. Sellers must add a sales tax of 6.25% to the selling price of each meal and collect it from the buyer. The tax must be indicated and invoiced separately on all invoices, invoices, displays or contracts, with the exception of those intended exclusively for alcoholic beverages. You must have gross income from sales of alcoholic beverages and non-alcoholic beer separately from the sale of food and other beverages in the appropriate lines of your meal tax return (line 1b for alcoholic beverages and soft beer; Line 1a for all meals and other beverages).

Non-state sellers who sell meals in Massachusetts generally have the same responsibilities as sellers in Massachusetts. Whatever the justification, meal taxes can result in significant costs and administrative complexity. For example, the Massachusetts Department of Revenue provides the following examples to explain which food transactions are subject to sales tax, which are subject to supplemental meal tax, and which are exempt: You can (but are not required) specify national and local meal tax amounts as separate items. .