This guide was created to help people who own or work at convenience stores and gas stations more easily understand the Washington State taxes that apply to their business activities. Please remember that state laws change on a regular basis and this guide may not reflect all changes that occur.
Bakery items: These include bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.
Generally, every person conducting business in Washington must register with the state through the Business Licensing Service. Once registered, the business owner receives a nine-digit unified business identifier (UBI) number. Generally, this number is also the Department’s account ID.
Retail sales tax must be collected on many items sold by convenience stores and gas stations. Following is a list of commonly sold items on which sales tax must be collected: (This list is not all inclusive.)
Air and water for vehicle use (coin operated)
Retail sales tax is collected on the machine receipts when the equipment is owned by the convenience store and/or gas station owner. The gross income is also reported under the retailing B&O tax classification.
Retailers should ask themselves the following questions to determine when an item is considered “prepared food” and subject to retail sales tax.
Items sold at retail are reported on the retailing and the retail sales tax lines of the excise tax return. The gross amount of the sale, not including sales tax, is reported on the return.
The gross amount reported under the retailing and retail sales tax lines must be the same. The deduction amount may differ.
Motor vehicle fuel is gasoline or other in flammable gas or liquid that is used for the propulsion of motor vehicles. Motor vehicle fuel includes the following:
Sales of motor vehicle fuel are not subject to retail sales tax; however, special fuel taxes do apply. Fuel taxes are paid to the distributor when fuel is purchased, and are passed on to the consumer. The sale of motor vehicle fuel is reported under the retailing and retail sales tax lines on the excise tax return.
The sale of goods through a consignment arrangement is taxed in the following manner:
A business making retail consignment sales must collect sales tax. Generally, consignment sellers remit sales tax directly to the Department (on behalf of the owner of the consigned goods). Examples of items sold on consignment at convenience stores and gas stations include crafted items such as handmade greeting cards and handmade jewelry.
Litter tax is imposed on those industries whose products are reasonably related to the litter problem. The tax applies to manufacturers, wholesalers, and retailers of products falling into the following thirteen categories:
Good record keeping is an important element of running a successful business. The law requires businesses to keep complete and adequate records for a period of at least five years. In general, records should be kept that provide:
Other important records to keep include:
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