Sales and Use Tax TAA 12A-029 Concentrated Coffee Product
QUESTION: Whether the sale of a liquid coffee concentrate is exempt from sales tax as a food product under s. 212.08(1), F.S.
ANSWER: The liquid concentrate coffee product qualifies as an exempt food product under s. 212.08(1), F.S., and is not subject to sales tax.
December 5, 2012
Re: Technical Assistance Advisement – TAA 12A-029
Concentrated Coffee Product
Taxpayer Name: XXX (“Taxpayer”)
Taxpayer ID Number: XXX
Sales and Use Tax
Section 212.08(1), Florida Statutes (F.S.)
Rule 12A-1.011, Florida Administrative Code (F.A.C.)
Dear XXX:
This response is in reply to your letter to the Department, dated XXX, in which you are requesting the Department's issuance of a Technical Assistance Advisement ("TAA") pursuant to s. 213.22, F.S., and Chapter 12-11, F.A.C., regarding whether the sale of a liquid coffee concentrate is exempt from sales tax as food product under section 212.08(1), F.S. An examination of your petition has established that you have complied with the statutory and regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for issuance of a TAA.
As provided in s. 213.22(1), F.S., a technical assistance advisement may be issued to a taxpayer who requests an advisement relating to the exemptions in s. 212.08(1) or (2), F.S., at any time. Technical assistance advisements shall have no precedential value except to the taxpayer who requests the advisement and then only for the specific transaction addressed in the technical assistance advisement, unless specifically stated otherwise in the advisement.
As stated in your letter, Taxpayer manufactures a liquid coffee concentrate made from a blend of coffee, natural flavoring, and sweeteners. The product is sold almost exclusively via the internet to end consumers throughout the United States.
REQUESTED RULING
You are requesting advisement regarding whether the sale of a liquid coffee concentrate is exempt from sales tax as a food product under s. 212.08(1), F.S. It is your contention that the product is exempt from sales tax as a food product, and that Taxpayer is not required to collect sales tax on sales made to its Florida customers.
LAW
Pursuant to s. 212.08(1), F.S., there are exempted from tax imposed by this Chapter, 212, F.S., food products for human consumption. The term "food products," as defined in s. 212.08(1)(b), F.S., means “edible commodities, whether processed, cooked, raw, canned, or in any other form, which are generally regarded as food.” Food products include coffee and coffee substitutes. See also Rule 12A-1.011(2)(a)7., F.A.C.
DETERMINATION
The liquid concentrate coffee product submitted for our review, qualifies as an exempt food product under s. 212.08(1), F.S., and is not subject to sales tax.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S. which is binding on the department only under facts and circumstances described in the request for this advice, as specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation summarized above. You are advised that subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this advice is based may subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material and this response, deleting names, addresses and any other details which might lead to identification of the taxpayer. Your response should be received by the Department within 15 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may contact me directly at (850) 717-7202.
Sincerely,
Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 717-7202
Record ID: 134004
