Ready-To-Cook Meals Taxable at Reduced Rate in Virginia

Mar 1st, 2017

The Tax Commissioner of Virginia ruled that ready-to-cook meals are subject to a reduced sales tax rate.

The taxpayer provided ready-to-cook meals for direct delivery to consumers. Deliveries included all ingredients necessary to cook a meal at home.

Virginia taxes sales of food for home consumption at a reduced rate. Food for home consumption includes any food sold in a closed container that is not for immediate consumption.

The food provided in the taxpayer's ready-to-cook meals came in closed containers and required preparation prior to consumption. As a result, the meals were food for home consumption and were taxable at the reduced rate.

http://www.lrd.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/17-4