Bakery Items

Bakery Items https://wahospitality.org/wp-content/uploads/2016/05/background-2561_1280.jpg

What is considered a “bakery item?”

“Bakery items” include breads, rolls, bagels, biscuits, croissants, pretzels, donuts, pastries, pies, cakes, tortes, muffins, cookies, tortillas, etc.

Note: Candy and pizza are not considered bakery items for purposes of the tax exemption.

Are bakery items taxable?

Washington law specifically exempts sales of bakery items. However, this exemption does not apply when the bakery item is sold with an eating utensil, or sold by an establishment that makes utensils available and primarily sells prepared foods. Utensils include plates, knives, forks, spoons, glasses, cups, napkins, and straws. Utensils do not include bags, boxes, and other containers or packaging used to transport bakery items.

Should retail sales tax be collected when bakery items are sold with coffee?

The charges for nontaxable bakery items must be properly segregated from the charge for any taxable items, such as a cup of coffee, otherwise the entire un-segregated charge is subject to retail sales tax.

References: RCW 82.08.0293; WAC 458-20-124; WAC 458-20-244; WAC 458-20-119 and WAC 458-20-12401

 


This article is an excerpt from the Handbook for Excellent Restaurant Operations (HERO), published by the Washington Hospitality Association.  Want a hard copy of the whole manual?  It’s one of the many benefits of becoming a member!  Find out more about joining the Washington Hospitality Association here.

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Categories: HERO