Questions and Answers

Identifying Information:Retail Bakeries Taxibilty Information Guide
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Retail Bakeries Taxibilty Information Guide
Keywords:Bakeries, Retail Bakeries, Bakery, Bakers
Effective Date:11/18/2019
Approval Date:11/18/2019



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Bakeries - Taxability Information Guide

The taxability of sales and purchases of tangible personal property and labor services by companies in the

Retail Bakery Industry are summarized below. This list is not all-inclusive.

Purchases by Bakeries:

Kansas sales or compensating use tax applies to those purchases identified or designated as taxable in the chart below.

The applicable Kansas sales or Kansas consumers’ compensating use tax must be paid to the vendor or accrued and

remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the

retailers’ sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the

Kansas consumers' compensating use tax return.

Purchases continued:
Taxable or Exempt
Warranty or service agreements for tangible personal property such as computers, printers, copiers and security equipment.
Taxable
Printed materials such as catalogs and flyers distributed directly to customers at the store or mailed directly to customers or prospective customers through mailing or delivery service.
Taxable
Printed materials provided to a newspaper or other publication to be included as an insert in the newspaper or publication that is to be sold at retail.
Exempt
Signs, banners or posters purchased from an outside printer, or the costs of all materials if produced by the store.
Taxable
Exterior building or parking lot signage, including charges for parts and labor for repairs and maintenance.
Taxable
Advertising as in newspapers, radio, or television.
Exempt
Professional services such as legal or accounting services.
Exempt
Canned software, software upgrades and labor services to modify, alter, update or maintain software.
Taxable
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software. "Customized" software is software developed for a single end user.
Exempt
Software or databases accessed via the internet and not installed on owned or leased computers or servers.
Exempt
Labor services on original construction of a new building or facility.
Exempt
Labor services for repairs, maintenance and remodeling of existing commercial buildings or facilities including repairs to parking lot.
Taxable
Security cameras, mirrors, security tags, tag detachers, countertop deactivators, all other security equipment.
Taxable
Security systems monitoring service.
Exempt
Cleaning services (except when applying products such as wax, scotch guard, etc), plant watering and care.
Exempt
Janitorial supplies such as vacuums, carpet cleaners, sweepers, brooms, dustpans, scrubbers, floor waxers, rags, and toiletries.
Taxable
Trash removal, shredding services.
Exempt
Linen services.
Taxable
Pest control materials and supplies.
Taxable

Sales by Bakeries:
*Sales/rentals to entities with proper exemption certificates provided are exempt from sales tax. Ensure the exemption
certificates are retained to substantiate all non-taxed transactions.

Note: Kansas tax applies to the “gross receipts” from the sale of taxable goods or services in Kansas. Gross receipts
include amounts collected from the customer such as charges billed for freight, delivery or special handling.

The taxability of sales of tangible personal property and labor services by (Your Industry) is summarized below.
This list is not all inclusive.
Sales
Taxable or Exempt
Bakery products, baked goods.
Taxable
Sales of food or drinks, including food or drinks sold to employees at full or reduced price.
Taxable
Mandatory gratuity (tip) charges.
Taxable
Tips that are freely given by customers.
Exempt
Gift Certificates.
Exempt
Food given away with a third party coupon, promotion, or groupon. Tax calculated on full selling price.
Taxable
Food given away or at a reduced price with a bakery's in-store coupon.
Exempt
Food sold for resale.
Exempt
Charges for party room rental.
Exempt
Sales to the federal government, state or political subdivisions, churches or other exempt entities if paid directly by funds of the exempt entity. In order to qualify for the exemption, the bakery 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
Instructional Classes
Exempt


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Date Composed: 11/18/2019 Date Modified: 11/18/2019