Restaurants with Grocery Food Sales

In Utah, sales of prepared food for immediate consumption are subject to the full sales tax rate in the jurisdiction where the sale occurs. Sales of grocery food (unprepared food and food ingredients) are subject to a lower 3 percent rate throughout Utah.

Restaurants that sell grocery food in addition to prepared food may collect the lower 3 percent tax on their grocery food sales, but ONLY IF those items are listed separately on the receipt or invoice. Report and pay sales tax electronically on Taxpayer Access Point (TAP) at tap.utah.gov, using the template for form TC-62M, Sales and Use Tax Return.

Restaurants must also collect a 1 percent restaurant tax on all food and beverage sales. The restaurant tax applies to all food sales, both prepared food and grocery food. Bars and taverns in Utah are also subject to restaurant tax on food sales and beverages (including beer and liquor). Report and pay this tax using form TC-62F, Restaurant Tax Return.

See Utah Code §§59-12-602(5) and 59-12-603(1)(a)(ii), Pub 55 (Sales Tax Information for Restaurants) and Pub 25 (Sales and Use Tax General Information).