Out-of-state delivery sales

When property such as vessels, trailers and parts are sold under a condition that they will be delivered to the purchaser out-of-state and they are so delivered, no sales tax or B&O tax is due.

This includes situations where goods are delivered in Washington to a for-hire carrier, consolidator or forwarder for delivery outside of this state. This is an exempt interstate or foreign sale (WAC 458-20-193).

In addition to a contract or agreement of sale, the following documents are required to prove the exemption:

  • If shipped through a for-hire carrier: a waybill, bill of landing, or other contract of carriage which indicates the seller has delivered the goods to the for-hire carrier for transport to the purchaser or purchaser's agent at a point outside the state. (The contract of carriage must reflect designations for the seller and purchaser such as consignor and consignee.) OR,
  • If delivered via seller's own equipment: a trip sheet signed by the person making delivery for the seller which records seller's name and address, purchaser's name and address, place and time of delivery to purchaser, and signature of the purchaser acknowledging receipt of goods outside of Washington.

Broker commissions earned in Washington are still subject to B&O tax under the service and other activities classification, even though delivery may be out-of-state.

Nonresident sale and use

A nonresident of Washington is a person who enters the state on a transitory or temporary basis and doesn’t maintain a legal presence or a residence (a place in which one lives) on a full- or part-time basis.

Persons who reside in more than one state including Washington are generally considered residents of Washington for sales/use tax purposes.

References: RCW 82.08.02665 and WAC 458-20-238