Are you required to collect sales tax on all your food sales?
If your prepared food sales are greater than 75 percent of your total food sales, then you are required to collect sales tax on all of your food sales, with the exception of sales of packages containing four or more servings.
Please note that you can choose to collect sales tax on all your food sales, then you are not required to perform the following calculations.
Information and tools regarding 75% rule
Other resources for sellers of food and drinks
Washington Administrative Codes (WACs)
- 458-20-119 Sales by caterers and food service contractors
- 458-20-124 Restaurants, cocktail bars, taverns and similar businesses
- 458-20-244 Food and food ingredients
Additional Special Notices:
- Sales of Charcoal Briquettes, Wood Chips, and Similar Items to Restaurants (Issued August, 2013)
- Personal Chefs (Issued January 2013)
- Restaurants Providing Complimentary Meals to Employees (Issued May 24, 2011)
- Taxability of Soft Drinks (Updated October 31, 2012)
- "Prepared Food" Tax Changes (Issued May 29, 2007)
- Litter Tax Exemptions for Prepared Food and Beverages (Issued June 16, 2005)
- Dietary Supplements - Sales Tax Changes (Issued April 16, 2004)
- Retailers of Fountain Drinks: B&O Tax Credit for Syrup Tax Paid (Issued April 14, 2006)
- Sales of Bakery Items (Issued April 7, 2004)
Excise Tax Advisory