Bars & Restaurants – Don’t overpay sales tax
With eight potentially applicable sales tax exemptions, Ohio bars, restaurants, and other food service operators (FSOs) should be paying very little sales tax. FSOs enjoy three exemptions specific to their industry, two applicable to manufacturers, and three available to businesses generally. Thanks to an Ohio Supreme Court decision, one of the three generally applicable exemptions applies more broadly in the bar/restaurant context than in others.
Owners should be very careful when making purchases. Even well-established food service vendors have difficulty applying Ohio’s unique exemptions. To help ensure tax isn’t overcharged, FSO owners should send their exemption certificate with purchaser orders, review quotes and invoices carefully, and insist that vendors identify which items they’re charging tax on.
Owners who’ve been overcharged tax aren’t out of luck. Refund claims can be filed if less than four years have passed since the date the tax was remitted by the vendor.
Need help figuring out what’s exempt? Contact Steve Estelle.