Are gratuities subject to the Meals Tax?

No; The Virginia Code, section 58.1-3840 says:

  • No such taxes on meals may be imposed on:
    1. The amount paid by the purchaser as a discretionary gratuity
    2. That portion of the amount paid by the purchaser as a mandatory gratuity or service charge added by the restaurant in addition to the sales price of the meal, but only to the extent that such mandatory gratuity or service charge does not exceed 20% of the sales price
    3. Food and beverages sold through vending machines or on any tangible personal property purchased with food coupons issued by the United States Department of Agriculture under the Food Stamp Program or drafts issued through the Virginia Special Supplemental Food Program for Women, Infants, and Children.

Show All Answers

1. What is considered a “meal” that is subject to the Meals Tax?
2. What is the Meals Tax rate in Middlesex County?
3. When are Meals Taxes due to Middlesex County?
4. Does the meal, or prepared food, have to be consumed on the premises of the business where it is purchased to be taxable?
5. Are beverages such as soda, beer, water and others that are in a can, bottle or other factory sealed container subject to the Meals Tax?
6. What is considered a “restaurant”?
7. Do businesses get a commission for aiding the county in the collection of the Tax?
8. Are gratuities subject to the Meals Tax?
9. Are there any exemptions to the Meals Tax?