Prepackaged food items
Wineries often sell pre-packaged foods such as:
- Chocolates, nuts, dried fruits.
- Crackers, cookies.
- Mustards, spreads.
Sales of pre-packaged foods are generally exempt from sales tax. However, the income from these sales remains subject to Retailing B&O tax.
Some wineries operate a bar with a limited menu or a full restaurant. Sales of prepared food are retail sales. Income from sales of prepared food is subject to B&O tax under the Retailing classification and you must collect sales tax.
If you operate a restaurant please refer to our Restaurants and retailers of prepared food guide for specific information on how those activities are taxable.
Note: Businesses where prepared foods make up more than 75% of the annual sales of food and food ingredients must collect sales tax on all sales of food and food ingredients (i.e. pre-packaged foods). All businesses that sell prepared foods must determine whether or not they meet the 75% threshold.
Sponsoring dinners/catering events
Wineries often sponsor or participate in dinners or catered events. If you serve prepared food to or cater for consumers, you are providing a retail service. You must collect retail sales tax on the total charge to customers for meal or catering services. Gross income from catering and meal services is also subject to B&O tax under the Retailing classification.
You must collect sales tax based on the location where you serve the meals.
WAC 458-20-119 Sales by caterers and food contractors.
WAC 458-20-124 Restaurants, cocktail bars, taverns and similar businesses.
WAC 458-20-244 Food and food ingredients.