Mandatory gratuities are different because they are automatically added onto the bill given to the customer. Gratuities and tips that a customer leaves voluntarily for the wait staff are not taxable. When a customer rents a room from a banquet facility but hires a separate caterer to conduct the event, the room rental charge is not taxable. It doesn't matter if the room charge is separately stated on the bill to the customer or included in the charge for catering. When the catering service is sold by a hotel or a caterer hired by the hotel, the charge for rental of the room is part of the charge for the event and is taxable. Hotels and banquet facilities may charge a separate fee for the use of a room to hold a banquet or other catered event. See Tax Bulletin Sales by Restaurants, Taverns, and Similar Establishments (TB-ST-806). Sales of food or beverages by caterers where the caterer merely delivers the items purchased, without any other services after delivery, are considered to be sales of food or beverages for off-premises consumption and are taxed accordingly. However, a caterer may make sales for resale of its services, including food and beverages that have been prepared or will be served by the caterer, provided the caterer receives a properly completed Form ST-120, Resale Certificate, from its customer. This includes everything from butler‑served hors d'oeuvres and sit-down dinners to breakfast buffets. The sale of food and beverages (both alcoholic and nonalcoholic beverages) that have been prepared or are served by caterers is taxable. This is true even if the charges are separately listed on the customer's bill or invoice. Any expenses incurred by the caterer for an event that are included in the overall charge to the customer are also taxable. In general, all charges by caterers related to a customer's event are taxable. Churches, temples, synagogues, American Legion or VFW posts, fraternal organizations, community centers, and other organizations are also caterers when they make sales of food, beverages, and various other services for events. Party planners and event coordinators who plan weddings and similar functions are also caterers when they arrange for and bill for food, beverages, and other services at an event.
how sales tax applies to purchases by a caterer.Ī caterer provides prepared food, beverages, and various other services for events.how sales tax applies to sales by a caterer, and.In general, a caterer's charges for food, beverages, and any services provided for a customer's event are subject to sales tax. Metropolitan transportation mobility taxĬaterers and Catering Services Tax Bulletin ST-110 (TB-ST-110) Printer-Friendly Version (PDF) Issue Date: April 8, 2019.
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