Day spas

Income from day spa services is generally taxable under the Service and Other Activities business and occupation (B&O) tax classification. However, some services, such as steam rooms or Turkish baths are subject to Retailing B&O tax, and you must collect retail sales tax.

When non-taxable and taxable services are sold as a non-itemized package, you must collect sales tax on the entire package. For example, when a package consists of steam room and massage, the entire charge is subject to retail sales tax. Charges for retail services or non-itemized packages containing retail services are taxable under the Retailing B&O tax classification.

When services are separately stated on an invoice, you will only collect retail sales tax on those services specifically defined as retail sales. Separately stated charges for nontaxable services are taxable under the Service and Other Activities B&O tax classification.

Below are examples of non-taxable and taxable services provided by day spas. These lists are not exclusive.

Spa services not subject to sales tax (non-taxable)

• Exfoliation
• Facials
•  Float pods
• Massage
• Nail care
• Nutrition
• Sauna (Traditional and Infrared)
• Whirlpool/Jacuzzi
• Wraps

Spa services subject to sales tax (taxable)

• Steam room
• Turkish bath

References

RCW 82.04.050 Sale at retail, retail sale
RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities