Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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  4. Restaurants And Retailers Of Prepared Food
  5. Restaurants, Cafes, Coffee Shops, Snack Bars, Etc.

Restaurants, cafes, coffee shops, snack bars, etc.

Generally restaurants and the like predominately sell prepared food (see discussion under Tax Information for Retailers of Prepared Food); therefore they must collect retail sales tax on the sales of all food and food ingredients sold by them. Additionally, they must pay Business and Occupation (B&O) tax under the retailing classification on all food and food ingredients sold by them.

For more information please also refer to WAC 458-20-244 & WAC 458-20-124.