Virginia Department of Taxation Rules That Exempt Entities May Make Certain Purchases of Meals, Food, and Catering Tax Free

May 12th, 2016

In a recent ruling, the Virginia Department of Taxation determined that certain exempt entities may make qualifying purchases of food, catering, and meals exempt from tax.

Virginia had previously treated meals, food, and catering as services rather than a sale of property. As a result, it was unclear whether the tangible personal property exemptions for these entities applied to these purchases.

The Department of Taxation explained that its policy is to now allow exempt entities to purchase food, catering, and meals exempt as long as the purchases meet the use or consumption requirements of each entity's specific exemption.