Selling at Fall Festivals? Here’s What Local Vendors Need to Know About Taxes! 🎃🍂

Fall is here, and that means pumpkin patches, craft fairs, trunk-or-treats, food trucks, and local festivals!

Whether you’re selling homemade baked goods, handmade crafts, boutique clothing, or serving food from your truck, these events are a great way to make extra money and support your local community.

But here’s something many small vendors don’t realize: Just because you’re selling at a weekend event doesn’t mean your earnings are tax-free!

Before you set up your next booth, let’s talk about a few things you should know.

💵 1. Yes, Cash Sales Count!

Whether your customers pay with cash, a credit card, Venmo, or another payment app, income from your business generally needs to be reported.

And no, you don’t have to receive a 1099 for that income to count!

BasicLee Tip: Keep a simple sales log showing the date, event, payment method, and total sales. Don’t forget to separate sales tax collected from your actual business revenue.

🧾 2. Those Booth Fees and Supplies Matter!

Did you pay $75 for a booth at the fall festival? Buy ingredients for baked goods? Purchase packaging or decorations for your display?

Those expenses may help reduce your taxable business profit when they’re ordinary, necessary, and properly documented.

Common expenses to track include:

Vendor registration and booth fees

Ingredients, merchandise, and supplies

Packaging, bags, and labels

Advertising and signage

Payment processing fees

Qualifying business travel expenses

BasicLee Tip: Save your receipts! A folder on your phone or a simple spreadsheet can make a big difference when tax season arrives.

🚚 3. Don’t Forget Your Mileage!

Traveling between festivals, picking up business supplies, or driving to vendor events?

You may be able to deduct qualifying business vehicle expenses.

Keep a mileage log showing where you traveled, the business purpose, and how many miles you drove.

Remember, personal trips and regular commuting aren’t automatically deductible. Vehicle deductions also depend on which expense method you’re eligible to use.

🍪 4. What About Sales Tax?

This is where things can get a little tricky!

In Georgia, sales tax rules depend on what you’re selling and where the sale takes place.

For example:

Handmade crafts and retail merchandise are generally subject to sales tax.

Prepared foods, including many food truck meals, are generally taxable.

Certain qualifying grocery foods may be exempt from Georgia’s state sales tax but still subject to applicable local taxes.

Selling at a temporary event doesn’t automatically exempt you from collecting sales tax.

BasicLee Tip: Check Georgia’s sales tax registration, collection, and event reporting requirements before attending your next festival.

📚 5. Keep Your Business and Personal Money Separate

When you’re running a small side business, it’s easy to mix your sales money with your everyday spending.

But that can create a headache when it’s time to calculate your business income and expenses.

Consider using a separate business bank account and keeping your receipts and sales records organized.

Even if you only participate in a handful of events each year, accurate records matter!

🎃 6. What If I Only Sell Occasionally?

Maybe you only bake cookies for a couple of fall festivals or sell handmade items during the holidays.

Do you still have to report the income?

Potentially, yes!

Occasional sales can still have tax consequences. Whether your activity is considered a business or hobby depends on the circumstances, and the rules for deducting expenses can differ.

If you’re regularly selling products with the intention of making a profit, it’s especially important to understand your tax responsibilities.

🍂 The BasicLee Bottom Line

Fall festivals should be about enjoying the season, supporting local businesses, and growing your customer base—not worrying about a surprise tax bill later!

Whether you’re a baker, crafter, food truck owner, or weekend vendor, a little organization now can make tax season much easier.

BasicLee Bookkeeping is here to help local small businesses stay organized and better prepared for tax season.

So go enjoy those fall festivals, sell those pumpkin goodies, and make those sales! Just don’t forget to keep track of them. 😉

This article provides general tax education. Your filing, deduction, and sales tax obligations depend on your specific business activities and circumstances.