New York—Sales and Use Tax: Taxability of Caterers and Catering Services

The New York Department of Taxation and Finance has issued a tax bulletin (TB-ST) that discusses the sales and use tax treatment of caterers and catering services. Specifically, the bulletin discusses the following: who is a caterer, how sales tax applies to sales by a caterer, and how sales tax applies to purchases by a caterer.

In general, all charges by caterers related to a customer's event are taxable. This includes charges for food, beverages (both alcoholic and nonalcoholic), and any services provided for a customer's event. Any expenses incurred by the caterer for an event that are included in the overall charge to the customer are also taxable. This is true even if the charges are separately listed on the customer's bill or invoice. Certain food and beverage items, such as produce, seafood, meat, canned goods, wedding cakes, desserts, and similar food items, are not taxable. No exemption certificate is needed to make these purchases without paying sales tax. Also, a caterer does not have to pay sales tax on its purchases of beverages (except for hot beverages such as hot coffee) that will be resold to customers as part of a catering event.