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Navigating Food Taxation: Understanding the Nuances of Sales Tax on Groceries and Prepared Foods

  • Taxability of food varies across states based on product details
  • Prepared and unprepared foods are taxed differently
  • Some states tax grocery foods at reduced rates
  • Candy and soft drinks have special classifications for tax purposes
  • Understanding food taxation is essential for businesses to stay compliant
  • Streamlined Sales Tax (SST) helps simplify managing sales tax across multiple states

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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