The Connecticut General Assembly enacted legislation under which certain sellers of meals are allowed to retain the sales tax they collect on sales of meals during a specified period of time.
In order to qualify for this benefit, the seller must make sales of meals and be included in Sector 72 of the North American Industrial Classification System (NAICS). It is up to the seller to determine if they fall within the parameters of this sector. Sellers can determine if they fall under this sector by viewing the list of Sector 72’s codes and titles found on the NAICS website. The majority of restaurant establishments should qualify.
Sellers that qualify for this benefit are eligible to retain all sales tax they collect on sales of meals during one of the following weeks:
● August 1, 2021, to August 7, 2021;
● December 12, 2021, to December 18, 2021; or
● May 15, 2022, to May 21, 2022.
It is up to the seller to decide which week they would like to retain sales tax on. Sellers are only eligible to retain sales tax on one of the three weeks listed above. If a seller decides to take advantage of this benefit, they will need to provide information about the meal sales they have made during the applicable week. The seller will provide this information when filing Form OS-114, Connecticut Sales and Use Tax Return, for the period that includes the applicable week.
The DRS will be providing additional information to assist sellers on their website. Any and all information will be posted to the DRS website at portal.ct.gov/DRS.
The Innovative CPA Group strives to keep our valued clients informed of the opportunities available to them. If you are interested in taking advantage of this sales tax relief benefit, we are readily available to assist. Please get in touch with us at 203-489-0612 or via our contact form.