Are caterers required to collect sales tax?
Caterers must collect retail sales tax on their total charge to customers for catering services. This includes the charge for meals, equipment, decorations, as well as the catering service.
The caterer must collect sales tax based on the location where the meals are served.
Wholesale sales
Caterers selling to persons other than consumers are making wholesale sales and may accept a properly completed resale certificate and report under the Wholesaling B&O tax classification. Retail sales tax does not apply.
Do caterers have to pay sales tax on purchases?
Yes. Caterers must pay retail sales or use tax on purchases or rentals of items for their own use in the business. The caterer is providing a retail service and is considered the consumer of all tangible personal property used. The tax applies even if the caterer itemizes the charge to the customer for the use of the items.
Taxable items include:
- Plates
- Glasses
- Linens
- Serving utensils
- Silverware
- Decorations
- Cooking equipment
Should caterers collect the stadium tax (King County food and beverage tax)?
Yes, but only if the caterer meets the definition of a “restaurant.” Meaning only if the caterer has a facility for preparing food (and is located in King County). The King County food and beverage tax applies only to meals and beverages. Separate charges made for use of linens, glassware, etc., are not subject to the tax.
References: WAC 458-20-124; WAC 458-20-12401 and WAC 458-20-119