No Tax On Free Meals In Pennsylvania

Pennsylvania restaurants that provide free meals to employees or patrons are not subject to sales and use tax. In addition, no use tax is due on restaurant purchases as long as the food is obtained from wholesalers, distributors, grocery stores or other non-eating organizations. However, the restaurant is liable for use tax on soft drinks provided free to employees or patrons. (Legal Letter Ruling No. SUT-05-004, Pennsylvania Department of Revenue)

Posted on August 18, 2006