Georgia Hookah Lounge Sales Tax Audit

By January 18, 2019 Georgia Sales Tax

Georgia Hookah Lounge Sales Tax Audit

If you are an owner of a Hookah Lounge in the Metro-Atlanta Georgia area, then, you might be on the hook for a little bit more than just tobacco tax.

Tobacco tax is just the tip of the audit. The auditors will likely ask you for proof of payment of the tobacco tax that you paid when you purchased the tobacco used for your pipes. If you did not pay the tax on your tobacco, the most likely result is a forfeiture of all of your tobacco products. Then, the auditors will likely send you over to the Criminal Investigations Division.

If you have paid your tobacco tax, the auditors will ask you for all of your other books and records showing all of your transactions. The gross sales will need to match the monthly sales tax returns. If you charge a mandatory gratuity fee, then those mandatory gratuities associated with a taxable sale are subject to sales tax. Voluntary gratuities are not taxable. It’s a dicey area of law, but Georgia taxes admissions and charges for participation in games and amusement activities. Therefore, we can deduce that admissions can equate to cover charges and door-fees collected by the business as well.

You will need to produce sales tax proof of payment for all consumables (things that you purchased to be used in your business ie. napkins, spoons) as well as the obvious sales tax that is charged and remitted to the Georgia Department of Revenue on meals.

Georgia Hookah Lounge Sales Tax Audit

Ansari Law Firm

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