Washington – Guide on Taverns and Service Bars

SALT Report 1653 – The Washington Department of Revenue recently updated their industry guide that explains the application of sales and use tax and business and occupation tax to taverns and service bars.  The guide reflects changes to the taxability of Beer Kegs as follows:
  • Amounts charged for the beer, the keg, the tap, etc., are subject to retail sales tax and retailing B&O tax. The retailer is not required to collect tax on any refundable deposit charged to the customer.
  • If the retailer does not refund the customer’s deposit, the retailer must report the amount of the forfeited deposit under the retail sales tax and retailing B&O tax classifications.
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