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What are some non-alcoholic French drinks?

Is it legal in Texas to serve nonalcoholic food and drinks wihout charging tax on them?

  • Well, as you can probably tell, I plan to open my own business in Texas. I want to open my own little shop, selling all sorts of bits and ends, and the star feature is one that no other store in my town has- an area for customers to actually sit, talk, and basically loiter! Because my target customers tend to be the type who like to sit and chat, regardless of actual shopping, I figured it would be good for business if I INVITED them to sit down and take a load off with a coffee table and a few otoman benches. But wait, you just got comfy and having a good chat with a friend when suddenly you get a craving for a coffee or piece of desert like they normally sell in the mall. Now your faced with the choice of getting up, walking to the food court, walking back and getting comfy all over again, or just skip the food/drinks. I was hoping to eliminate that choice by serving teas and coffees and maybe home cooked fudge/brownies/cookies. Can I sell the food non taxed to the customers?

  • Answer:

    yes, in Texas, all prepared foods are taxable. you do not need to charge your customers tax, but you will have to pay taxes on all sales at the current city/county rate, most counties around 8.25%

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If you are selling something, someone must pay a tax. Now, giving it away is another thing.

mylilbubbers

Good question. I can't cite specific Texas code, but worked in food service for several years at restaurants that served various alcoholic and nonalcoholic beverages. When I worked at Starbucks, all coffee beverages and drinks sold in cups were taxed. Bottled water and most bottled water products are never taxed. Bags of coffee beans were taxed. Prepared food served to customers was always taxed. That included cookies, pretzels, cake, etc. Some non-essential foodstuffs like gum and candy must be taxed. However, when I worked at local chain of cafes, they sold loaves of bread tax-free. So the difference is whether or not the food will be consumed on-site. By providing customers with a place to eat, it is a taxable service.

Daniel E

Can I sell the food non taxed to the customers? No.

flyeater16

You will be paying taxes to the state based on your sales. So, if you want to pay the tax on their purchase then yes, but that will cut into your profit. Even in the grocery cookies and candy is taxed.

mmuscs

No, you are required by law to charge sales tax on ALL items in the kind of business you are talking about. Just ask any Starbucks or cafe or coffee shop manager / owner.

parker_n_mj

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