ncCPAp on the GO!

sales tax on admission charges

  • 1.  sales tax on admission charges

    Posted 02-02-2019 15:45

    Question for the group. I have a client that is a bar and restaurant. The operation also has live shows on its stage. For these shows they charge admission. Are these admission charges subject to sales tax in New York? I believe that admission charges to a live performance are not subject but in this case the taxpayer is a restaurant in addition.



  • 2.  RE: sales tax on admission charges

    Posted 02-04-2019 14:30
    Barry,

    Under (relatively) new Section 1123, your client's charges for admission to live performances may be exempt from sales tax.

    The key is that charges for the show, food, etc. has to be separately stated and all must be at fair value.  There are many considerations, so I cannot give a guaranteed answer with the facts as presented.


    Brian Gordon


    State Tax Audit Representation, Inc.





  • 3.  RE: sales tax on admission charges

    Posted 02-04-2019 17:07

    Thanks for you reply. My client is a bar. When they have live entertainment another entity, in no way related to my client, charges admission for the show and to the bar.. My client only maintains the bar operations. The admission charges are, at the present, kept by this other entity. That is how they get paid. My client receives nothing from the admission charges. They are hoping to start maintaining the door charges (admissions) in the future.