Retail Sales Tax
Collecting sales tax from consumers
You must collect retail sales tax on all sales that are subject to the retailing classification of the B&O tax, unless the law provides a specific exemption. Retail sales tax is comprised of a state (6.5 percent) and local rate (varying).
You are liable for remitting the correct amount of sales tax, even if you have under-collected or not collected sales tax from your customer.
Sales tax is collected on the selling price of the goods, including any additional charges added, such as shipping or delivery fees or any amount that is separately stated on the invoice.
You must state the sales tax amount separately on all sales invoices or other sales documents. The tax cannot be included in a lump sum price. When sales tax is not separately stated, it is presumed that the tax was not collected by the seller or paid by the buyer.
Items commonly sold by wineries upon which sales tax must be charged include, but are not limited to:
- Glassware and wine accessories (foil and bottle openers, wine charms)
- Books, cards, posters
Sales of pre-packaged foods are generally exempt from sales tax. (See “Common sales tax exemptions” for additional details.) However, the income remains subject to retailing B&O tax. Examples include:
- Chocolates, nuts, dried fruit
- Crackers, cookies
- Mustards, spreads
Determining the sales tax rate to charge
When you make retail sales, you must collect both the state and local portions of the sales tax. Local sales tax is reported on your excise tax return and must be coded according to where the goods were received by the buyer. The sales tax coding on the tax return determines how the Department distributes local taxes to local city and county governments throughout the state. Because local governments depend on these taxes to fund various services, it is important that you collect and report sales tax properly.
As of July 1, 2008, you will determine the correct sales tax rate for retail sales by the destination of the sale – that is, the location where the buyer takes delivery of the goods.
When the buyer receives the goods at the point of sale, you will charge the sales tax rate for the location where the sale is made.
For sales where you ship the goods to the buyer, you must charge the sales tax rate for the location where the goods are shipped – the destination of the sale.
- Dave purchases and takes possession of a case of wine at the winery location in unincorporated Benton County. The winery will charge Dave the sales tax for unincorporated Benton County, where the winery is located and where he took delivery of the wine.
- Lori is a wine club member of ABC winery. The winery ships two bottles of wine every 4 months to her home in Tacoma. The winery will charge Lori the sales tax rate for her Tacoma home, since this is the destination of the sale and where she takes delivery of the wine.