Food sales

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.

Prepared foods

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.