Businesses subject to the state meals tax should be aware of an important change in collections made by the Massachusetts Department of Revenue. Filers are being asked to break out cash versus credit sales when reporting gross sales on the Sales Tax on Meals return.

The original plan also called for businesses to differentiate between online versus in-store sales but was eventually abandoned after concerns were raised by business groups, including NFIB. Understanding that capturing this type of data may prove difficult for many businesses, NFIB will work with the Department to seek a solution.

To learn more, please see the Department of Revenue’s frequently asked questions on this topic.