Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

Purchases – assets (not M&E) and consumables

Businesses must pay retail sales or use tax on purchases of tangible personal property used in conducting their business activities and retail services. Examples of taxable purchases include, but are not limited to:

  • Supplies (office and shop).
  • Computer hardware and software.
  • Furniture and fixtures.
  • Building improvements.
  • Landscaping.

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