Information Guide

Identifying Information:Restaurants Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Restaurants Self-Audit Fact Sheet
Keywords:
Approval Date:12/13/2004


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
RESTAURANTS SELF-AUDIT FACT SHEET


RESTAURANTS - SALES TAX FACT SHEET
(Consult Publication KS-1540, Kansas Business Taxes for Hotels and Restaurants, for
more information - www.ksrevenue.org)
Purchases by Restaurants: Sales Tax
Booths and all other furniture and fixtures including but not limited to: desks, lamps, tables and chairs, high chairs and booster seats, carpet, curtains and drapes Taxable
Appliances and kitchen equipment including but not limited to: air-conditioners, microwaves, televisions, water heaters, ovens, stoves, refrigerators and freezers, coffee makers, mixers, sinks and dishwashers, pots, pans, mixing bowls, exhaust hoods, food processors, Taxable
Menus, ashtrays, candles, candleholders, condiment dispensers Taxable
Cloth tablecloths, cloth napkins, uniforms, pictures, plants, decorations Taxable
Office equipment and supplies including but not limited to: computers, fax machines, writing utensils, paint, signs and office forms Taxable
Restroom and janitorial supplies, mops, brooms Taxable
Dishes, glassware, barware, silverware, cookware and napkin dispensers Taxable
Cash registers, register tapes, customer tickets Taxable
Complimentary items such as toothpicks, balloons, matches, candy, peanuts, popcorn, activity materials for children, etc., not associated with the sale of food. Taxable
Items used by the restaurant such as wax paper, stretch wrap, foil, paper towels, dish soap, cleaning materials, garbage bags, etc. Taxable
Purchase or Lease of real estate, Insurance Exempt
Repair and remodeling labor services to existing real estate Taxable
Labor services on original construction of new building or facility Exempt
Labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, stoves, ovens, security equipment, etc. Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, stoves, ovens, security equipment, etc. Taxable
Utilities (electricity, gas, water, heat) used for lighting, air conditioning, heating, cleaning, etc. Taxable
Utilities (electricity, gas) used for cooking; water served to customers as water, coffee, tea, soup, etc. Exempt
Food and drink items purchased to be resold to the customer including condiments such as salt, pepper and mustard Exempt
Disposable items provided to the customer including but not limited to: plastic dinnerware and table service, drinking straws, paper napkins, paper or plastic bags and takeout boxes, paper bibs Exempt
Food served without charge to employees of the restaurant whose duties are related to the furnishing of meals to the public Exempt
Trash service Exempt
Cleaning services Exempt
Professional services such as accounting or legal services Exempt
Sales by Restaurants: Sales Tax
Sales of meals or drinks, including meals sold to employees at full or reduced price Taxable
Admission or cover charges Taxable
Mandatory gratuity (tip) charges Taxable
Gift Certificates Exempt
Tips that are freely given by customers Exempt
Vending machine sales Taxable
Food given away with a third party coupon Taxable
Food given away with a restaurant's coupon Exempt
Food sold to another restaurant for resale Exempt
Charges for party room rental Exempt
Coat checking charges Exempt
Sales of alcoholic beverages that are subject to the 10% Drink Tax Exempt
Sales of 3.2 Beer Taxable
Sales to the federal government, state or political subdivisions, churches or other exempt entities if paid directly by funds belonging to the exempt entity. In order to qualify for the exemption, the restaurant must maintain a copy of the bill to the exempt entity and proof that payment was made by the exempt entity (copy of voucher, check or credit card) Exempt




Date Composed: 07/06/2006 Date Modified: 07/06/2006