California Audit Manual Chapter 9, Grocers
California Audit Manual Chapter 9, Grocers

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For purposes of this chapter, a grocer is a retailer whose principal business is the sale of food products and related items. The term includes separate grocery departments in department stores, but does not include delicatessens, country or general merchandise stores, and establishments that handle groceries as a sideline. A problem often arises in audits of liquor stores with a substantial volume of sales of merchandise normally sold in grocery stores. Whether these qualify as grocery stores will depend on the fundamental nature of the business. Generally, in order to fall within the definition of a grocery store, at least 50% of the total sales should be comprised of exempt food products and taxable grocery sales. See Exhibit 8 for examples of taxable grocery items to determine if the taxpayer meets the definition of a grocer.

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  • Released: November 16, 2020
  • Author: Business Tax and Fee Division California Department of Tax and Fee Administration
  • Rating: 5
  • Publisher: Ebook DIgital Agency
  • Total Page: 965 pages
  • File Size: 3670 KB
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