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.

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  5. Itemizing The B&O Tax

Itemizing the B&O tax

B&O tax is overhead

The B&O tax is a tax on the seller and is a part of the seller's overhead. It is not a tax imposed on the buyer and collected by the seller, as is the case with Washington's retail sales tax.


Completing the return

When completing the excise tax return, the amounts reflected in the "gross amount" and "taxable amount" columns for both B&O tax and retail sales tax must include any amounts charged to the buyer for B&O tax.