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Q:  What are some common situations where use tax is owed?

A: 

Washington’s use tax is due on items used by a business or individual when sales tax has not been paid (except inventory held for sale). The following list provides examples of purchases on which you may owe the use tax:

 

  • Goods are purchased in a state with no sales tax or a lower sales tax rate.
  • Goods are purchased from someone who is not authorized to collect sales tax.
  • Goods are purchased from a mail order catalog company, or over the Internet from an out-of-state retailer (e.g. office supplies, magazine subscriptions).
  • Personal property is acquired with the purchase of real property.


The local tax rate for use tax is determined by the location where the goods are used.

More information
WAC 458-20-178
More information about use tax
Related questions & answers
When do I owe use tax?
Are gifts subject to use tax?
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