Food, Non-Qualifying Food, and Prepaid Meal Plans

NC Department of Revenue, 3 min read

This lesson is a guide published by NCDOR.

Read the guide

What you'll get

The state's definitions of which food is taxed at only the local rate and which is taxed at the full rate: candy, soft drinks, prepared food, dietary supplements and vending-machine food are non-qualifying, while candy containing flour and drinks containing milk or milk substitutes fall outside those definitions. It covers food and drink only, so use it to find out which rate applies to each of your products before you print a price list.

Do this week

Mark each product on your price sheet as qualifying or non-qualifying food using the page's definitions, and list any you can't settle to ask NCDOR about.