A few more important takes on legal issues…
Keep an Eye on Sales Tax
Trying to keep up with the many policies and rules around sales tax can keep restaurateurs up at night. The Georgia Department of Revenue (DOR) can wield a mighty hand when it comes to tax, penalties and interest and knowing the latest updates can keep owners out of hot water.
Some typical issues the DOR is seeing right now during audits include improper taxation of free meals (or use of coupons), food for home consumption versus prepared food, and failure to collect sales tax on mandatory gratuities and service charges.
Another area to be aware of involves third-party delivery sales tax collection. In a law that became effective April 1, 2020, the “marketplace facilitators” are required to collect and remit sales tax on sales that take place on their platform. And for the third-party delivery companies, the DOR is seeing instances where the “facilitator” is paying sales tax to the restaurant instead of them.
Find out more about DOR regulations pertaining to sales tax, food exemptions and third-party delivery:
- http://rules.sos.ga.gov/GAC/560-12-2-.115
- http://rules.sos.ga.gov/GAC/560-12-2-.104
- Sales Tax Bulletin – Marketplace Facilitators | Georgia Department of Revenue
Alcohol Sales
Make sure you know the local distance requirements for serving alcohol before you sign a lease. Your local jurisdiction may require that your business be a certain distance away from churches or schools or alcohol treatment centers and in some cases, residences.
All of the alcohol on your premises has to be delivered by a licensed wholesaler or distributor. If you run out of something and buy it at a package store – or take it from a sister restaurant – that’s illegal and the Department of Revenue can seize all of your alcohol.
Restaurants can only deliver alcohol within the jurisdiction that issued their license.
Gift cards or coupons can’t be used for alcohol.
Third-party delivery of alcohol:
- The liability for not checking IDs and for delivering to somebody who’s underage or intoxicated falls on the restaurant. Make sure whoever is delivering has the correct training and certification and meets the requirements.
- There is a state mandate requiring restaurants to keep records for three years that include the person the delivery was made to, that person’s date of birth and a signature. While the information may be gathered by a third-party provider, it is the restaurant’s responsibility to maintain that data.
Your Legal Checklist
- Know the law in your local jurisdiction.
- Stay up-to-date on training and licensing.
- Make sure you have all the licenses and permits in place and make sure those are posted in the proper places.
- Make sure new employees are signing the policy regarding alcohol compliance and monitor them.
- Create and implement concise and consistent policies and procedures that make it easy for your employees to do the right thing.
- Provide good management backup so that employees aren’t put in positions to make difficult decisions.
- Stay current with all health and safety regulations.
- Review your contracts with third-party delivery providers and make sure data security measures are in place. State law requires that certain limited information be provided to the restaurant or they can access it immediately or maintain it themselves.
- If you are streaming music, make sure you have the proper license in order to avoid copyright violations.
For more information about protecting your restaurant from potential legal issues, click here.
