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.