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WAC 103 Time and place of sale.    
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-103   05/25/1982 Time and place of sale.
         
       
RCW:      
  82.04.040   1961 "Sale," "casual or isolated sale."
  82.08.020   1992 Tax imposed - Retail sales - Retail car rental.
  82.08.140   1961 Administration.
         
       
ETA 3146.2009 2/2/09 Sale without transfer of possession
020.08.103 7/1/66 Catalogues purchased within the state for distribution without - This document is no longer needed.  WAC 458-20-193(6) (Inbound and outbound interstate sales of tangible personal property) currently explains that sales tax applies when goods are delivered instate, even if the purchaser may use the goods elsewhere. Cancelled by ETA 2003 -4s 09/14/2001
173.04.103 12/31/92 SEED FURNISHED UNDER GROWER CONTRACTS-Cancelled effective 9/20/03.
179.08.103 8/26/66 CREDIT BUREAU BUSINESS, CHARGES FOR CREDIT INFORMATION, AND THE RETAIL SALES TAX This document explains that the term "credit bureau business" encompasses all persons receiving income from furnishing credit information.  The manner in which the information is secured is deemed immaterial.  While this information is correct, Det. 89-89R, 13 WTD 9 (1993), provides a much more comprehensive explanation of what is encompassed by "credit bureau business."  Cancelled by ETA 2003 -4s 09/14/01
421.04.103 4/30/71 SALES TAX: LABOR PERFORMED OUTSIDE THE STATE Cancelled Effective 03/28/08. This document explains that retail sales tax applies to repair labor performed outside of Washington at the option of the in-state repair shop.  This document explains that in order to be exempt from retail sales tax, the owner of the article must agree that the actual repair services were to be performed outside of Washington.  This document fails to recognize that owner is nonetheless subject to use tax under these circumstances.  Additionally, effective July 1, 2008 retail sales tax will be sourced to the location where the repaired property is received by the customer.
428.04.103.106 5/14/71 BUSINESS AND OCCUPATION TAX:  EXCHANGE AGREEMENTS INVOLVING FUNGIBLE GOODS - Revised 12/31/92
428.04.103.208 12/31/92 EXCHANGE AGREEMENTS INVOLVING INVENTORY--This ETA is cancelled effective 4/21/03 See WAC 458-20-208 (Exemptions for adjustments of new motor vehicle inventory between new car dealers and accommodation sales.)
         
       
INDUSTRY GUIDES:      
         
       
SPECIAL NOTICES:      
Subject Title Reference:      
Gift Certificates/ Unclaimed Property   06/10/2004 Gift Certificates and Gift Cards--Changes for Businesses/Holders
         
       
IAG: 03.01   01/01/2001 Taxability of Credit Bureau Services - Cancelled effective
June 30, 2005 - See ETA 2026 
         
       
DIRECTIVE: None      
         
       
RPM: None      
         
WTD: 1 WTD 337 86-289   RETAIL SALES -- CREDIT BUREAU SERVICES  -- OUT-OF-STATE SALE. Retail sales by credit bureau services take place in this state when the services are performed herein. No credit bureau services were performed by in-state taxpayer under the following circumstances: (1) out-of-state member organizations requested the credit reports from an out-of-state provider; (2) credit reports were delivered directly to the out-of-state customers by the out-of-state provider utilizing interstate communications; and (3) instate taxpayer did not correct, delete, or add any information to the credit reports.
  2 WTD 11 86-295   DELIVERY - TIME OF SALE - PLACE OF SALE - TITLE - RISK OF LOSS. Physical or constructive delivery of goods determines the time and place of sale and not such matters as where title to the goods or risk of loss passes.
  2 WTD 127 87-4   RETAIL SALE -- TIME OF. A sale takes place in this state when the goods are delivered to the buyer in the state, not when the goods are paid for.
  2 WTD 397 86-161A   TIME AND PLACE OF SALE -- DELIVERY -- PHYSICAL POSSESSION -- U.C.C. Rule 103, rather than the Uniform Commercial Code, governs both the "time" and "place" of sale for tax purposes. Delivery of goods under the Rule 103 provisions connotes the transfer of physical possession of the goods to the buyer or another person on behalf of the buyer.
  2 WTD 397 86-161A   DELIVERY -- RISK OF LOSS -- TRANSFER TO POSSESSION. Delivery of physical possession of goods sold, to the buyer in this state is dispositive of the question where a sale occurs for tax purposes, not the fact the "risk of loss" may pass to the buyer outside this state.
  3 WTD 153 87-171   RETAIL SALE -- LEASE -- TIME AND PLACE OF SALE. When property is leased, the taxable sale does not occur where the lease agreement is consummated or where the property is transferred, but where the property is used.
  3 WTD 281 87-214   B&O TAX -- DEDUCTION -- FREIGHT CHARGES. Freight charges recovered by sellers are part of gross sales proceeds and may not be deducted from the measure of the seller's business and occupation tax.
  4 WTD 229 87-342   B&O TAX -- WHOLESALE SALES -- OUT-OF-STATE SELLER -- DELIVERY TO BUYER OUTSIDE WASHINGTON. If an out-of-state seller delivers its products to a Washington buyer and delivery takes place outside this state, no B&O tax applies to the sales. The seller's records must document the out-of-state delivery.
  4 WTD 417 88-6   RETAIL SALES TAX -- REFUND. Tax, interest and penalties deleted on transactions for which the taxpayer subsequently provided evidence that the sales were for resale, or were sales made to an out-of-state buyer, or that the purchasers had paid the sales or use tax owing directly to this state.
  5 WTD 145 88-146   RETAIL SALES TAX -- TIME AND PLACE OF SALE -- DELIVERY IN WASHINGTON -- PROPERTY USED EXCLUSIVELY OUTSIDE OF WASHINGTON. The sale of property delivered in Washington is subject to retail sales tax regardless of the fact that the property will be used outside of Washington.
  5 WTD 179 88-155   B&O TAX -- INSTATE DELIVERY -- ULTIMATE OUT-OF-STATE DESTINATION. When taxpayers provided storage at their own Washington facilities at the request of affiliate-buyers pending their products' further sale and shipment by the buyer to out-of-state destinations, the taxpayers in accepting responsibility for storage were acting as agents of their affiliate-customers, and constructive delivery thus took place in this state. As Rule 193A points out, a product's ultimate destination being outside the state of Washington does not render its sale nontaxable if delivery to the buyer occurs in this state. Columbia Bean distinguished.
  5 WTD 179 88-155   B&O TAX -- NEXUS -- SALES CONTRACTS -- DELIVERY CANCELLATION -- OUT-OF-STATE NEGOTIATIONS. When the taxpayer, a dealer in hops, and another dealer during the course of a year had contracted to sell to each other identical amounts of hops at different prices, and when delivery requirements to each other were subsequently cancelled and the difference in the contract amounts paid to the taxpayer, the State of Washington had insufficient jurisdiction to tax the transaction as it had been originally negotiated since all contract negotiations had taken place between the parties' out-of-state headquarters and no delivery, and hence no "sale," had taken place within this state.
  7 WTD 237 89-126   B&O TAX -- AIRPLANES -- SALE OF -- DELIVERY -- OUT-OF-STATE. The sale of an airplane to a Washington buyer by an out-of-state seller is not subject to B&O tax when the buyer takes delivery of the plane at the seller's out-of-state facility.
  7 WTD 237 89-126   B&O TAX-- AIRPLANE PARTS -- DELIVERY OF -- OUT-OF-STATE -- COMMON CARRIER -- SHIPMENT BY. The shipment of airplane parts via common carrier from an out-of-state seller to an in-state buyer constitutes a Washington delivery and sale.
  8 WTD 345 89-509   WHOLESALING B&O TAX -- EXEMPTION -- INTERSTATE SALES -- DELIVERY TO BUYER. A sale takes place in this state when the goods sold are delivered to the buyer in this state. If delivery to the buyer takes place outside this state, there is no sale in this state.
  9 WTD 286-55 88-366A   F.O.B. DESTINATION -- DELIVERY -- SALES -- TAX LIABILITY. Shipments are F.O.B. destination when an out-of-state taxpayer/seller bears the risk and expense of transport and tenders delivery in Washington. Under Rule 103, in determining tax liability of persons selling tangible personal property, a sale occurs in Washington if goods sold are delivered to the buyer in this state.
  10 WTD 133 90-348   INTERSTATE SALES OF GOODS TO PERSONS IN WASHINGTON -- NEXUS -- DELIVERY -- B & O TAX -- SALES TAX. For excise tax purposes the taxability of sales transactions is governed by the Revenue Act and the rules respecting that act (in this matter Rules 193 and 103), not the Uniform Commercial Code. Accord: Det. No. 86-161A, 2 WTD 397 (1987).
  11 WTD 91 91-042   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- DELIVERY -- F.O.B. ORIGIN, FREIGHT COLLECT -- NEXUS. Where the contract of sale does not obligate the out-of-state seller to deliver goods to the buyer in Washington and that buyer pays the carrier's freight costs from the out-of-state shipping point (F.O.B. origin, freight collect), the sale and delivery are deemed to have occurred out-of-state and not subject to the B&O tax even if there is general nexus between Washington and the out-of-state seller.
  11 WTD 231 91-188   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- DELIVERY --  NEXUS. Where the contract of sale does not obligate the out-of-state seller to deliver goods to the buyer in Washington and that buyer either pays the carrier's freight charges from the out-of-state shipping point (F.O.B. origin, freight collect) or carries the goods itself from seller's place, the sale and delivery are deemed to have occurred out-of-state and not subject to the B&O tax. Conversely, where an out-of-state seller, who has nexus with Washington, either pays a for-hire carrier to deliver goods to a dealer in Washington or transports them itself to Washington, the delivery and sale are deemed to have occurred in Washington and the sale is subject to B&O tax. Accord: Final Det. 86-161A, 2 WTD 397 (1987).
  11 WTD 231 91-188   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- OUT-OF-STATE DELIVERY. When out-of-state seller ships its products for delivery to non-Washington locations as required by its sales contracts, the sales are not Washington sales and are not taxable by Washington even if the customers themselves are located in Washington. Accord: Final Det. 86-161A, 2 WTD 397 (1987).
  11 WTD 239 91-213   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- DELIVERY --  NEXUS. Where the contract of sale does not obligate the out-of-state seller to deliver goods to the buyer in Washington and that buyer either pays the carrier's freight charges from the out-of-state shipping point (F.O.B. origin, freight collect) or carries the goods itself from seller's place, the sale and delivery are deemed to have occurred out-of-state and not subject to the B&O tax. Conversely, where an out-of-state seller, who has deliver goods to a dealer in Washington or nexus with Washington, either pays a for-hire carrier to transports them  itself to Washington, the delivery and sale are deemed to have occurred in Washington and the sale is subject to B&O tax. Accord: Final Det. 86-161A, 2 WTD 397 (1987).
  11 WTD 273 91-279   INTERSTATE SALES OF GOOD TO WASHINGTON CUSTOMERS -- DELIVERY -- NEXUS -- B&O TAX. Where the contract of sale does not obligate the out-of-state seller to deliver goods to the buyer in Washington and that buyer either pays the carrier's freight charges from the out-of-state shipping point (F.O.B. origin, freight collect) or carries the goods itself from seller's place, the sale and delivery are deemed to have occurred out-of-state and not subject to the B&O tax. Conversely, where an out-of-state seller, who has nexus with Washington, either pays a for-hire carrier to  deliver goods to a dealer in Washington or transports them itself to Washington, the delivery and sale are deemed to have occurred in Washington and the sale is subject to B&O tax. Accord: Final Det. 86-161A, 2 WTD 397 (1987).
  11 WTD 353 91-174   RETAIL SALES TAX -- DELIVERY OF GOODS SOLD -- TIME OF SALE -- CONSTRUCTIVE DELIVERY -- STORAGE IN SELLER'S PREMISES. Where taxpayer/seller sells and invoices for the goods sold, and then stores the goods for a lengthy period of time pending disposition by the buyer, there has been constructive delivery to the buyer with the seller deemed as agent of the buyer to provide storage. The sale took place for tax reporting purposes as of the time of the invoicing when the taxpayer is on the accrual basis. Accord: Det. No. 88-155, 5 WTD 179 (1988); and Det. No. 89-509, 8 WTD 345 (1989).
  11 WTD 383 91-192   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- OUT-OF-STATE DELIVERY. When out-of-state seller ships its products for delivery to non-Washington locations as required by its sales contracts, the sales are not Washington sales and are not taxable by Washington even if the customers themselves are located in Washington. Accord: Det. No. 86-161A, 2 WTD 397 (1987).
  11 WTD 383 91-192   INTERSTATE SALES OF GOODS TO WASHINGTON CUSTOMERS -- DELIVERY --  NEXUS. Where the contract of sale does not obligate the out-of-state seller to deliver goods to the buyer in Washington and that buyer either pays the carrier's freight charges from the out-of-state shipping point (F.O.B. origin, freight collect) or carries the goods itself from seller's place, the sale and delivery are deemed to have occurred out-of-state and are not subject to the B&O tax. Conversely, where an out-of-state seller, who has nexus with Washington, either pays a for-transports them itself to Washington, the delivery and sale hire carrier to deliver goods to a dealer in Washington or transports them itself to Washington, the delivery and sale are deemed to have occurred in Washington and the sale is subject to B&O tax, providing the seller's in-state activities are significantly associated with the sale. Accord: Det. No.86-161A, 2 WTD 397 (1987).
  11 WTD 469 91-281   TIME OF SALE -- CONDITIONAL SALE.   The time of sale for a conditional sale is when the buyer takes possession.
  12 WTD 109 92-057   B&O TAX -- INTERSTATE -- TIME AND PLACE OF SALE -- CONSIGNMENT SALES. An out-of-state taxpayer who consigns inventory to an out-of-state distributor's warehouse pending subsequent sales by that distributor in its own name to retail outlets is deemed to be making wholesale sales to that distributor. If the warehouse is located outside the state of Washington, then the sale takes place outside the state of Washington.
  12 WTD 297 90-215A   COMMODITIES WARRANTS -- PLACE OF SALE -- TRANSFER OF TITLE TO TANGIBLE PERSONAL PROPERTY DELIVERED IN WASHINGTON STATE -- B&O TAX. The sale of tangible personal property effected by the transfer of a "commodities warrant" is subject to Washington B&O tax if the property underlying the warrant is delivered in Washington. Accord: Det. No. 88-155, 5 WTD 179 (1988); Det. No. 86-295, 2 WTD 11 (1986).
  13 WTD 9 89-89R   RETAILING B&O TAX -- RETAIL SALES TAX -- CREDIT BUREAU BUSINESSES -- SERVICES DEFINED AS RETAIL SALES -- LOCATION OF SALE. With respect to services defined as "sales at retail" under RCW 82.04.050, the sale takes place and is subject to retailing B&O tax and retail sales tax at the location where the services are performed. Thus, credit bureau businesses are liable for retailing business tax and collection of retail sales tax measured by gross receipts from credit reports where the retail services which generate such reports are performed in this state regardless of where the customer is located and regardless of where the credit report is delivered. Accord: Final Det. No. 86-82A, 1 WTD 133 (1986).
  13 WTD 9 89-89R   RETAILING B&O TAX -- RETAIL SALES TAX -- SERVICES COMPRISING CREDIT BUREAU BUSINESS DEFINED -- SERVICES DEFINED AS RETAIL SALES -- LOCATION OF SALE -- APPORTIONMENT THROUGH ALLOCATION. The credit bureau business consists of the rendition of fundamental services to clients, including information gathering, information analysis, information formatting and explanation, and information dissemination. When these services are performed in Washington State, the gross receipts paid by the client are fully taxable in Washington State.
  13 WTD 9 89-89R   RETAILING B&O TAX -- RETAIL SALES TAX -- SERVICES DEFINED AS RETAIL SALES -- LOCATION OF SALE -- APPORTIONMENT THROUGH ALLOCATION. In the case of credit bureau businesses and other services statutorily defined as "retail sales," the taxable incident or event is allocated to the location where the fundamental services or business activities are primarily performed.
  13 WTD 9 89-89R   RETAILING B&O TAX -- RETAIL SALES TAX -- CREDIT BUREAU BUSINESSES -- SERVICES DEFINED AS RETAIL SALES -- LOCATION OF SALE. With respect to services defined as "sales at retail" under RCW 82.04.050, the sale takes place and is subject to retailing B&O tax and retail sales tax at the location where the services are performed. Thus, credit bureau businesses are liable for retailing business tax and collection of retail sales tax measured by gross receipts from credit reports where the retail services which generate such reports are performed in this state regardless of where the customer is located and regardless of where the credit report is delivered. Accord: Final Det. No. 86-82A, 1 WTD 133 (1986).
  13 WTD 9 89-89R   RETAILING B&O TAX -- RETAIL SALES TAX -- SERVICES COMPRISING CREDIT BUREAU BUSINESS DEFINED -- SERVICES DEFINED AS RETAIL SALES -- LOCATION OF SALE -- APPORTIONMENT THROUGH ALLOCATION. The credit bureau business consists of the rendition of fundamental services to clients, including information gathering, information analysis, information formatting and explanation and information dissemination. When these services are performed in Washington State, the gross receipts paid by the client are fully taxable in Washington State.
  13 WTD 334 93-180   RETAIL SALES TAX -- FREIGHT CHARGES. Freight charges recovered by sellers are part of gross sales proceeds and may not be deducted from the measure of the seller's B&O tax and retail sales tax.
  17 WTD 25 95-088ER   WHOLESALING B&O TAX -- OUT-OF-STATE VENDORS --INTERSTATE SALES OF GOODS TO PERSONS IN WASHINGTON -- DELIVERY IN WASHINGTON. Goods sold by an out-of-state vendor to its Washington customers were delivered in Washington and, therefore, are considered Washington sales when the vendor bore the expense of the shipment, even though the goods were sold f.o.b. vendor's out-of-state plant. Taxpayers must meet the requirements of ETB 560 before the Department of Revenue will allow tax treatment similar to the taxpayer in PACCAR, Inc. v. Department of Rev.
  17 WTD 354 98-056   Retail sales tax is due upon the sale of tangible personal property. If a buyer does not pay retail sales tax at the time of purchase, the Department will assess "deferred retail sales tax."  If, however, a buyer cancels a contract for the production and delivery of tangible personal property but the seller continues to invoice the buyer for the delivery of the goods and the buyer chooses to continue to pay the invoices rather than pay the liquidated damages for breach of the contract,  the payments are not subject to deferred retail sales tax. This is because there has been no sale of tangible personal property. The payments are compensatory in nature and the seller is required to pay B&O tax upon such receipts.
  17 WTD 424 98-098   MACHINERY AND EQUIPMENT - EXEMPTION - SALES CONTRACTS - SALES PRIOR TO EFFECTIVE DATE OF EXEMPTION. A taxpayer need not collect and remit retail sales tax to the Department of Revenue, on amounts received for sales of machinery or equipment that otherwise qualify as exempt under RCW 82.08.02565, when the unconditional sales contract was entered into prior to the effective date of that statute and the amounts were received prior to the effective date of that statute, if the machinery or equipment was delivered after the effective date of RCW 82.08.02565.
  18 WTD 153 98-133   B&O TAX -- SALE -- VALUE PROCEEDING OR ACCRUING -- CONSIDERATION -- BARTER. The transfer of goods for valuable services constitutes a sale of the goods measured by the value of the services.
  18 WTD 264 (Part 1 of 2) 99-216E   WHOLESALING B&O TAX - PLACE OF SALE -RECEIPT OF GOODS - UCC DEFINITIONS OF DELIVERY. Sales take place in Washington where an out-of-state manufacturer sells products to a Washington buyer under a contract which provides that the goods will be sent f.o.b. the taxpayer's out-of-state manufacturing plant and that the products are subject to final inspection and acceptance by the buyer at the destination in Washington. Although the contracts provided that the buyer had the right to assign resident personnel at the taxpayer's facilities the authority to accept the goods, the taxpayer presented no evidence that such right was ever exercised or that the buyer had an employee or agent at the taxpayer's plants who inspected the goods and either accepted or rejected them on the buyer's behalf prior to shipment.   
  18 WTD 264 (Part 2 of 2) 99-216E   Transfer of title is not dispositive for B&O tax purposes. Rule 193 cannot be read to permit transactions to escape taxation that the Supreme Court has specifically construed the B&O statute to include. Out-of-state delivery of a product by a seller to a common carrier does not constitute out-of-state receipt by a purchaser. Uniform Commercial Code definitions of delivery are not controlling for B&O tax purposes. Instead, a Washington sale takes place when the goods are received by the buyer or its agent in this state.
  19 WTD 212 98-224   USE TAX -- LIMITATION FOR ASSESSMENTS -- TIME AND PLACE OF SALE -- DELIVERY -- TITLE TRANSFER. Use tax was not due on the plate-making machine originally sold and delivered in 1988 even though title did not actually transfer until 1991.
  19 WTD 753 98-157   MISCELLANEOUS -- B&O TAX -- TRANSFERS TO COMPETITOR -- TOLLING AGREEMENT -- FUNGIBLE GOODS. Transfers of fungible aluminum ingots to a competitor for the purpose of having the metal processed are tolling agreements and are not subject to wholesaling B&O taxes even though Taxpayer may have accounted for the transfers as a buy/sell arrangement.
  20 WTD 197  99-298   WHOLESALING B&O TAX -- PLACE OF SALE -- RECEIPT OF GOODS -- UCC DEFINITIONS OF DELIVERY. Sales take place in Washington where an out-of-state manufacturer sells products to a Washington buyer under a contract which provides that the goods will be sent f.o.b. the taxpayer's out-of-state manufacturing plant and that the products are subject to final inspection and acceptance by the buyer at the destination in Washington. Transfer of title is not dispositive for B&O tax purposes. Rule 193 cannot be read to permit transactions to escape taxation that the Supreme Court has specifically construed the B&O statute to include. Out-of-state delivery of a product by a seller to a common carrier does not constitute out-of-state receipt by a purchaser. Uniform Commercial Code definitions of delivery are not controlling for B&O tax purposes. Instead, a Washington sale takes place when the goods are received by the buyer or its agent in this state. Accord: Det. No. 99-216E, 18 WTD 264 (1999)
  20 WTD 197  99-298   WHOLESALING B&O TAX -- PLACE OF SALE -- RECEIPT OF GOODS -- QUALITY ASSURANCE PROGRAMS DISTINGUISHED FROM ACCEPTANCE. Where  taxpayer's personnel inspect goods at the taxpayer's out of state facilities on behalf of the buyer to satisfy governmental regulations regarding quality assurance, such inspection and subsequent shipment of goods do not constitute the acceptance of goods by the buyer's agent out of state so as to make such sales out-of-state sales.
  20 WTD 531 01-074   WHOLESALING B&O TAX - GROSS PROCEEDS OF SALE -- MEASURE. Where an out-of-state manufacturer sold products to its independent distributors in Washington for resale to customers, the out-of-state manufacturer was required to pay Wholesaling B&O tax measured by its gross proceeds of sale to its distributors.
     
         
     
OTHER: