I am an event producer who partners with banquet spaces to produce dinner theater events in Michigan and Indiana.
The guests pay me for admission, which includes food. I pay the banquet space for the food. The banquet space charges me tax and pays it to the IRS.
Am I under an obligation to charge the guest tax for the sale of food, too? Essentially, does the IRS demand to be paid tax twice for the same food? I am never in possession of the food myself - the banquet staff serves it directly to the guests.
In my research I can't find a clear answer. I did find one document (pertaining to Michigan law) that says only "prepared food" is taxable and defines "prepared food" as "food served in a heated state which is heated by the seller." As I interpret this, it renders the question moot. If I am considered to be selling the food to the guest, it is nontaxable because I (the seller) didn't heat it. If I am not considered to be the seller, then I shouldn't charge tax on it whether it is taxable or not.
Any info anyone else has pertaining to this would help me a great deal.