Which food and beverage sales are subject to sales tax?

Espresso stands and coffee shops generally sell coffee and coffee beverages. Many also sell sandwiches, soups, pastries, and other food.

Persons operating an espresso stand must collect retail sales tax on sales of prepared food and soft drinks. Coffee and coffee drinks meet the definition of a prepared food and therefore, are taxable. Prepackaged cookies and the like may be sold exempt from sales tax.

Note: The seller must collect sales tax on all sales unless the seller properly segregates the taxable and tax-exempt sales.

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.

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