The NYSDTF received a petition for an Advisory Opinion whether teaching private cooking, baking, and decorating lessons in people’s homes are subject to sales tax.
The petitioner (a private cooking instructor) inquired if there was a difference for sales tax purposes if: (1) the client provided ingredients to be used during the private cooking lesson, or (2) if the cooking instructor provided the ingredients.
NYSDTF Analysis:
Tax Law § 1105(c) imposes sales tax on the receipts from every sale, except for resale, of certain enumerated services. Cooking and baking lessons are not among the services subject to tax. See Tax Law § 1105(c); TSB-A-02(34)S. When Petitioner provides the relevant ingredients, Petitioner is using those ingredients in the provision of a non-taxable service and is not reselling those ingredients to the customer. Therefore, Petitioner should pay any applicable sales tax on the purchase of the ingredients. See 20 NYCRR 526.6(c)(7); TSB-A-01(12)S. Because the ingredients and recipes provided in tangible form are incidental to the service, it does not change the non-taxability of the service. See TSB-A-01(12)S. Therefore, the lump sum charge for providing these lessons is not subject to tax.