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Q:  What location determines the tax if a buyer arranges to have a shipping company pick up the product from the seller’s warehouse or the warehouse of a third party?

A: 

Shipping company pick-up does not constitute receipt of a product under RCW 82.32.730(8)(c), so the following rules apply:

 

  • If the seller knows the delivery destination, the seller should collect the sales tax for that destination.  RCW 82.32.730(1)(b). 
  • If the seller does not have the delivery destination, the sale should be coded to the buyer’s address as maintained in the seller’s business records.  The seller must not use this address in bad faith. RCW 82.32.730(1)(c).
  • If the seller does not have the buyer’s address in his business records, the seller should code the tax to an address for the buyer obtained at the time of the sale. The seller must not use the address in bad faith.  RCW 82.32730(1)(d).
  • If none of the above applies or there is insufficient information to apply the rules, the seller should default to the origin-based tax rate and code.   RCW 82.32.730(1)(e).

 

If the person picking up the product is a representative of the buyer (and not a shipping company), such as an employee, family member, independent contractor, etc., the tax is based on the seller’s location (as in an over-the-counter sale).  RCW 82.32.730(1)(a).
More information
RCW 82.32.730
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