Food and Food Ingredients
sales tax.
Food and Food Ingredients
“Food and food ingredients” are defined as liquid, concentrated, solid, frozen, dried, or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value. Food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements, and prepared food. For more information and examples of food and food ingredients, please see Important Notice 17-20.
The most common example of a dealer selling food and food ingredients is a grocery store. Food and
food ingredients are those items otherwise taxed at the 4% state sales tax rate plus the applicable local
rate.
Reporting Exempt Sales
All dealers must properly report sales made during the sales tax holiday. For the August 2022 reporting period, sales should be reported as follows:
1. Report all sales (taxable and non-taxable) on Page 1, Line 1 (Gross Sales) of the sales tax
return.
2. Report all sales of exempt food and food ingredients made during the holiday period
on Schedule A, Line 10, and Schedule G –
Temporary Exemptions.
The information reported on Schedule A, Line 10, is required in order for the State to reimburse local governments for the loss of local sales tax resulting from the tax holiday. This exemption will only be available for the holiday period. All retail sales of food and food ingredients
made after August 31, 2022, will be subject to sales tax.
For More Information
Visit www.tn.gov/revenue. Click on Revenue Help to search for answers or to submit an information request to one of our agents.
References Tenn. Code Ann. §§ 67-6-102 and 67-6-393. Public Chapter 1131 (2022)
Source: Sales Tax Holiday. (n.d.). Www.tn.gov. https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.html
