If you operate a GST-registered food business, you need to include GST where your food is:
- for consumption where it is sold (for example, sold at a restaurant or cafe)
- hot food for consumption away from where it is sold (for example, a takeaway meal with a hot component, such as fish and chips)
- ‘food marketed as a prepared meal’ (which can include salads).
To work out if your food is ‘food marketed as a prepared meal’, consider the following:
- Does the packaging and labelling indicate it is a prepared meal (for example, referred to as lunch)?
- Does the menu or signage indicate the food is marketed as a prepared meal (for example, ‘lunch to go’)?
- Does it include all of the necessary ingredients for a complete meal?
- Is it packaged for immediate consumption?
- Is it supplied with cutlery and a napkin?
- Is it priced similar to other comparable prepared meals?
- Is it competing with other takeaway meals?
Remember, registered tax agents and BAS agents can help you with your tax.
- Use these ATO tools to help work out if you need to charge GST