Taxability of Pizza Delivery Charges in Indiana

Monday, May 1st, 2017

 
 
Pizza delivery guy holding eight boxes of pizza.
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Indiana
Food

The Indiana Department of Revenue recently ruled that food delivery charges are subject to sales tax. A pizza franchise did not collect tax on its delivery charges under the assumption they were not taxable. The pizza franchise relied on the audit of another franchise in making this incorrect assumption.

The ruling found that delivery charges are taxable as part of the sale of prepared food. Further, the ruling found that the taxpayer could not rely on the audit of another franchise in making a sales tax determination. However, reliance on the audit was sufficient to prove the taxpayer was not subject to a penalty for willful negligence.

https://www.ttrus.com/sites/default/files/in/20170426-IR-045170206NRA.xml.pdf


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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.

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