South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-305.1 - Educational Institutions

Current through Register Vol. 48, No. 6, June 28, 2024
Colleges and universities sell or provide meals and other foods
				in a variety of ways.
Meals are provided to students in a cafeteria under a board
				plan. Under such plans, students will purchase all their meals (breakfast,
				lunch and dinner) for an entire semester or year at the beginning of the school
				year. This is usually done at the same time students pay their tuition and
				other fees. Typically, the student who signs up for one of the board plans is
				given a card that is used by the student to obtain the meals.
In addition, students who participate in a limited board plan
				may purchase individual meals sold by the college or university in the
				cafeteria. For example, one board plan may furnish meals to students Monday
				through Friday. A student under this limited plan may from time to time choose
				to purchase an individual meal in the cafeteria on Saturday or Sunday.
Employees, visitors and students who do not participate in a
				board plan may also purchase meals sold by the college or university in the
				cafeteria. Generally, these meals are purchased on an individual basis;
				however, some colleges and universities sell tickets that entitles the
				purchaser to several meals.
Also, colleges and universities may sell meals and food to
				students and others at canteens, snack bars, and other places around the
				campus. In addition, food may be sold at concession stands at sporting and
				theatrical events.
Finally, colleges and universities may contract with food
				service companies to sell or furnish meals on campus. Under such contracts, the
				food service company will either be an agent of the institution or will sell
				the meals to the institution, who has sold the meals to the students via a
				board plan.
Meals Served Under Board Plan
1. Sales to an educational institution of
			 unprepared food products, for use in furnishing meals under a board plan, are
			 retail sales subject to the sales tax or the use tax.
2. Sales to a food service company of
			 unprepared food products, for use in furnishing meals under a board plan, are
			 retail sales subject to the sales tax or the use tax if the food service
			 company is the agent of the educational institution.
3. Sales by food service companies of meals
			 to an educational institution or directly to the students, as part of a board
			 plan, are retail sales subject to the sales or the use tax if the food service
			 company is merely under contract with the educational institution and is not
			 the agent of the educational institution.
For additional information concerning sales by, and purchases
				from, suppliers (including information on resale certificates), see sections
				117-305.3
				and 117-305.4 below.
Cash or Other Food Sales, Not Under a Board Plan
1. Sales by an educational
			 institutions of meals and other foods (including the purchase of tickets that
			 entitles the purchaser to several meals), other than those furnished under a
			 board plan, are retail sales subject to the sales tax or the use tax.
2. Sales of meals and other foods by a food
			 service company as the agent of an educational institution, other than those
			 furnished under a board plan, are retail sales subject to the sales tax or the
			 use tax.
3. Sales of meals and
			 other foods by a food service company, other than those furnished under a board
			 plan, are retail sales of the food service company subject to the sales or the
			 use tax.
For additional information concerning sales by, and purchases
				from, suppliers (including information on resale certificates), see sections
				117-305.3
				and 117-305.4 below.