What Restaurant Owners Need To Know About Meals Tax
Running a restaurant means juggling a lot—menus, staffing, suppliers—and yes, taxes. One tax that often trips up restaurant owners is the meals tax.
So, what is it?
Meals tax is a sales tax specifically applied to prepared food and beverages sold by restaurants, cafes, food trucks, and similar businesses. It’s charged to the customer, but it’s the restaurant’s responsibility to collect and remit it to the local or state tax authority.
Why It Matters
Many cities and states have their own meals tax rate in addition to regular sales tax.
Failing to collect or remit the correct meals tax can lead to penalties, audits, and interest charges—costly mistakes that are 100% avoidable.
How a Bookkeeping Firm Helps
That’s where we come in
When your books are clean and your taxes are filed right, you can focus on what you do best:
running a great restaurant.
- Track and record all taxable sales.
- Ensure accurate meals tax collection and reporting.
- File your meals tax returns on time.
- Keep you compliant and audit-ready.
