Purchases of Audio-Visual Equipment by Caterers Taxable in Texas

Friday, August 12th, 2016

A close-up of a microphone at a conference.

Texas Comptroller determined that a caterer could not get a refund on its purchases of audio-visual equipment even if it had filed its refund claim on time.

The caterer bought audio-visual equipment for its clients to use for conferences and events. The caterer argued that it should get a refund of tax paid on the equipment because it sometimes rented the equipment out, not as part of its catering services. It argued that it therefore had bought the equipment in tax-free purchases for resale.

Generally, caterers must pay tax on purchases of tangible personal property that they will use to provide catering services. This includes audio-visual items such as projectors, screens, microphones, sound systems, lighting, props, telephone lines, and internet-related services. However, they may purchase items for resale if they purchase the items for something other than for use in catering services.

The taxpayer argued that the equipment was not always used to provide catering services and was sometimes rented out by itself. The taxpayer did not file its refund claim on time and so could not get a refund. In addition, the taxpayer did not provide invoices or contracts that could prove that it rented out its equipment. As a result, the caterer could not get a refund even if it had filed on time.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Charges to Use Fitness Device for Entertainment Taxable...

Friday, August 17th, 2018 -The Alabama Tax Tribunal recently ruled that charges for the use of a "fitness device" at a festival or event ...

Private Club Alcohol Purchases Taxable in Arkansas

Thursday, August 16th, 2018 -The Department of Finance and Administration recently ruled that a liquor store must collect sales tax from pr...

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...