Reviewed and updated October 16, 2026

Classify the sale before choosing a tax setting

Texas generally taxes prepared meals sold by restaurants and caterers. Food rules have exceptions, and selling food does not make every transaction taxable or exempt in the same way. Review the actual product, service and invoice rather than copying a grocery-store exemption into a restaurant POS system.

These are Texas rules, while local tax collection can depend on sourcing and the transaction. Confirm the applicable treatment for each location and sales channel. Do not assume one rate or setting covers every Houston-area delivery or event.

Read catering and platform records closely

A catering invoice may combine food, service, delivery and equipment. Separately stating a charge does not automatically make it nontaxable. Review how the charges relate to the meal and retain the contract and itemized invoice supporting the treatment.

For third-party orders, establish which party collects and remits tax for the transaction. Keep marketplace agreements and settlement reports. A platform’s involvement does not establish that it handles every tax obligation of your business. Platform fees, customer taxes and the restaurant’s taxable sales are different accounting questions.

Reconcile gross activity to the deposit

A net platform payout is not a complete sales report. Start with orders or POS totals and reconcile discounts, refunds, taxes, tips, fees and settlement timing to the amount deposited. Avoid booking the same sale once from the POS and again from the bank feed.

For a simple reconciliation, show gross food sales separately from tax collected and any fees withheld before payment. Investigate differences before posting an unexplained adjustment. Keep daily POS summaries, catering invoices, exemption documentation where applicable and platform statements with each reporting period.

Review these records as part of the monthly close, then compare them with the sales-tax return. Contact our team when adding a delivery app, catering service or another location so the bookkeeping process can reflect how money and tax actually move.

Official sources

This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.