Which food and beverage sales are subject to sales tax?

Espresso stands and coffee shops generally sell prepared coffee and coffee beverages. Many also sell sandwiches, soups, and other foods such as bottled water or juices, prepackaged chips, cookies, or muffins and coffee beans (whole bean or ground) by the pound.

Sellers that make utensils available to customers and sell both prepared foods and other foods must determine whether their prepared food sales make up more than 75 percent of their total food sales.  This calculation can be done on an annual basis to apply for the subsequent years sales. 

For more information about calculating the 75 percent threshold, please see Information for Retailers of Prepare Food.

Sellers that meet the 75 percent threshold must collect sales tax on most food sales. In this case, the only foods that may be sold tax-exempt are foods that are packaged as four or more servings, are generally exempt, and are sold for a single unit price.  For example, coffee beans (ground or whole) sold by the pound. 

Sellers below the 75 percent threshold may continue to segregate their food sales and collect sales tax only on sales of foods that they prepare, or foods that they sell in a manner that an eating utensil is necessary to receive the food.

Can I include the sales tax in my sales price?

Sales tax can be included in the sales price but only if the price list and other price information clearly indicate that sales tax is included. See the Including Sales Tax in the Price section.

King County Food and Beverage Tax

Sales of taxable foods and beverages by espresso stands located in King County are subject to the stadium tax (King County food and beverage tax).

Businesses making sales through mobile sales units such as catering trucks or sidewalk vendors of food or beverage items are not required to collect the additional stadium tax.

References: RCW 82.08.0293; WAC 458-20-124; WAC 458-20-244; WAC 458-20-119; WAC 458-20-12401