SALT Report 1919 – The Washington Department of Revenue updated their sales and use tax guide for businesses that offer car wash vending machines. The guide notes that businesses that provide these machines to wash or vacuum vehicles, or to dispense air or water are making retail sales and are required to report and pay retail sales tax and B&O tax.
When reporting the tax, the Department notes that retailers do not need to separately state the sales tax from the total sales collected from the vending machines. Instead, the retailer may deduct the sales tax from the total amount received in the machines to determine the net amount that will become the measure of tax. Once the amount is calculated, the taxes should be reported under the retailing classification on the gross proceeds of sales.
Also, the Department has developed a Vending Machine Worksheet for retailers to help calculate the amount of tax due.
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