In addition, an establishment is considered to be a fast food establishment for this deduction when it tends to have any of the following characteristics:
- A menu consisting primarily of precooked items or items prepared in advance and heated quickly
- Placement of orders at a fast serve drive-through or walk-up window
- Service of food solely in disposable wrapping or containers
- A menu that exclusively sells hamburgers, sandwiches, salads, and other fast foods
How to Report the Deductions in GRT Returns
Businesses opting for this deduction during the allowable period may choose one of the following options for monthly or quarterly reporting purposes.
- Don’t charge customers on deductible receipts that qualify for the deduction.
- Charge the applicable GRT on amounts received from customers and keep the collected GRT. GRT collected from customers won’t be considered gross receipts, and restaurants shouldn’t report these tax payments as gross receipts or claim the deduction with respect to these payments.
Paper and electronic filers need to follow specific instructions based on filing methods to report these deductions in the GRT returns.
We’re Here to Help
The deduction is only available from March 1, 2021, through July 1, 2021, so food and beverage businesses will need to act quickly to benefit from the opportunity.
To learn more about the temporary GRT and other savings opportunities for food and beverage businesses, reach out to your Moss Adams professional.