Sales Tax Compliance Every Quick Service Restaurant (QSR) Needs to Know

The Ohio Department of Taxation has issued a sales tax compliance regarding Quick Service Restaurants (QSR).  The compliance allows for QSRs to enter into a pre-determined percentage of sales that would be considered taxable.  The percentage must be agreed upon by both the QSR and the tax department.  The goal of the compliance is to relieve the QSRs from keeping daily sales sheets showing taxable sales (food consumed on premises) versus nontaxable sales (food consumed off premises) during the audit procedure.

The compliance also has an educational feature that would reduce the likelihood of an audit.  If an audit does occur participation in the compliance program would allow for a waiver of the 15% penalty.  The compliance program requires the QSR to meet the following requirements:

  • Completion of educational webinar
  • POS must be programmed to default all sales as taxable
  • QSR must be registered for required taxes
  • All tax returns and payments must be timely filed and paid
  • The QSR can have no assessments against it

If you would like more information please contact Kirk Trowbridge, CPA at or 614-545-9100 , 29.

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