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Understand Sales Tax for Food & Beverage
Is Food Taxable in Nevada?
byDecember 28, 2020
Every US state makes their own rules around sales tax. Many states, Nevada included, treat certain food, like groceries, a little differently than other items when it comes to how much sales tax a business should charge.
This post will explain grocery, meal and beverage taxability in Nevada.
Are groceries taxable in Nevada?
In Nevada, grocery items are tax exempt. Nevada treats both candy and soda as groceries for sales tax purposes.
Are meals taxable in Nevada?
Prepared food intended for immediate consumption is taxable in Nevada at the rate of 6.85%. Nevada defines prepared food intended for immediate consumption to be:
- food sold in a heated state or heated by the seller;
- two or more food ingredients mixed or combined by the seller for sale as a single item; and
- food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.
The prepared food being sold at retail need only fall into one of the 3 categories listed above to be considered prepared food intended for immediate consumption.
Are beverages taxable in Nevada?
Nevada also considers coffee, coffee substitute, and tea to be taxable at the 6.85% rate since it is prepared hot for immediate consumption. In addition, any beverage that is sold with a straw, cup, or glass is subject to the 6.85% tax rate.
How to Always Collect the Correct Amount of Sales Tax in Nevada
Do you sell groceries, meals or beverages? Are you required to collect sales tax in Nevada? Then this may sound like a huge headache.
That’s where TaxJar can help.
With the TaxJar API, you can be sure you’re collecting the right amount of sales tax on every transaction. Our product tax codes ensure you do collect sales tax on that soft drink but don’t collect sales tax on that plain coffee drink.
Not to mention, most eCommerce businesses have nexus in multiple states. For example, groceries are taxable in some states, but non-taxable in others. With TaxJar, you’ll collect the right amount of sales tax from every customer, in every state, every time.
Further food and meal taxability resources:
- Sales Tax by State: Are grocery items taxable?
- Sales Tax by State: To-Go Restaurant Orders
- Is the food I sell on my food truck taxable?
- Nevada Sales Tax Guide for Businesses
Ready to automate sales tax collection, reporting and filing? Click here for more on how TaxJar can streamline and automate your food & beverage sales tax, so you can focus on what matters most to your business
Your food taxability checklist
Food and beverage taxability is complicated, and collecting and filing correctly can be difficult. Use this checklist to make sure you’re compliant.Download the checklist