Sales of products

Income from sales of products to your customers is generally taxable under the Retailing business and occupation (B&O) tax classification, and you must collect sales tax.

The sales tax rate is based on the location where your customer receives the goods. Usually, that is the location of your salon. You can find the appropriate sales tax rate by using our Tax Rate Lookup tool.

If you sell products to other businesses who will resell them and the buyer provides a copy of their valid reseller permit, the sales are taxable under the Wholesaling B&O tax classification. You do not have to collect sales tax on wholesale sales. You must keep copies of all reseller permits provided by your customers.

Sales of hair care products, skin care products, nail care products, and cosmetics are also subject to Litter Tax. Examples of items subject to Litter Tax include shampoo, hair styling products, face creams and lotions, nail polish, and cosmetics. You will report he Litter Tax on your excise tax return.

References

RCW 82.04.050 Sale at retail, retail sale
WAC 458-20-102 Reseller permits
WAC 458-20-243 Litter tax