Texas Sales Tax Exemption & Refund Opportunity for Restaurants
- Pursuant to Texas State Comptroller of Public Accounts (“Texas Comptroller”), if a vent hood is used in the actual manufacturing of food for ultimate sale and is indispensable and integral to comply with federal or local laws, then the services rendered for the cleaning of those vent hoods may qualify for exemption of sales tax, provided certain conditions are met.
- Based on a combination of specific precedent, definitions and statutory language provided in the Texas Code, the Texas Administrative Code (TAC) and the Texas Department of State Health Services (DSHS), we can evaluate the eligibility, calculation, documentation and filing for a Texas Sales Tax exemption.
- This exemption would include a formal refund claim for sales tax paid in error on tax-exempt services for the four-year eligible lookback period as well as ongoing exemption for future hood cleaning services.