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Q:  I am not the warrantor how do I report repairs made under an extended warranty?

A: 

When a person other than the warrantor makes a repair for the warrantor, the person making the repair is making a wholesale sale of the repair service to the warrantor and should take a resale certificate from the warrantor to document the wholesale nature of the transaction. The person doing the repair is taxable under the wholesaling classification of the B&O tax. This tax treatment applies beginning July 1, 2005, even though the extended warranty may have been sold before that date.

Note:  Effective January 1, 2010, the resale certificate will be replaced with a reseller permit issued by the Department of Revenue.  For more information, visit our Reseller Permit page.

More information
Auto Dealers Guide - Warranties
Special Notice - Extended Warranties Now Subject to Sales Tax (pdf)
WAC 458-20-257
Reseller Permits
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