Custom-made jewelry, engravings or other fabricated items

The production, creation, customization or fabrication of jewelry is a manufacturing activity. Therefore, you owe manufacturing B&O tax on your charges to produce, create, customize, engrave or fabricate jewelry. You owe manufacturing B&O tax on the gross selling price of the merchandise.

Manufacturing B&O tax applies even if you deliver the merchandise to the customer outside of Washington. You also owe retailing B&O tax and retail sales tax on your sales to Washington consumers. However, you may claim a multiple activities tax credit (MATC). This credit applies so that you actually only pay B&O tax once on the product even though you report under two B&O tax classifications.

If you make or customize jewelry from materials and supplies that your customer provides you, the income you receive is subject to B&O tax under the Processing for Hire classification (WAC 458-20-136 and WAC 458-20-19301).