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Are Meal Subscription Boxes Subject to Sales Tax? Understanding Taxability by State

  • Whether meal subscription boxes are taxable depends on where your business has sales tax nexus and if the products in the box are taxable in those states.
  • Sales tax nexus can be created by having a physical presence, employees, inventory, affiliates, or sufficient sales in a state.
  • Most states do not tax grocery items, or they tax them at a reduced rate.
  • If your subscription box only contains grocery items, you may not need to collect sales tax, or may collect it at a lower rate, depending on the state.
  • Each state has its own rules, so businesses must check both their nexus status and the taxability of their products in each state.

Source: taxjar.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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