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.

  1. Home
  2. Education
  3. Industry Guides
  4. Vessel Brokers And Dealers
  5. Vessel Deconstruction Services

Vessel deconstruction services

Vessel deconstruction services are exempt from sales/use tax. This exemption expires Jan. 1, 2025. (RCW 82.08.9996, RCW 82.12.9996).

Qualifying deconstruction services:

To qualify for the exemption, the deconstruction services must be performed at one of the following:

  • A qualified vessel deconstruction facility; or
  • An area over water which has a National Pollutant Discharge Elimination System (NPDES) permit for vessel deconstruction

The buyer must give the seller a Buyer’s Retail Sales Tax Exemption Certificate. The seller must keep a copy of the completed exemption certificate for five years.

Buyer's responsibilities

Buyers must give a Buyer's Retail Sales Tax Exemption Certificate to the seller, who must keep a copy of the completed exemption certificate for five years. 

Buyers who use this exemption must submit a Buyer’s Sales and Use Tax Preference Addendum when they file their next excise tax return online.

Definitions

Vessel deconstruction: permanently dismantling a vessel, including:

  • Abatement and removal of hazardous materials.
  • Removal of mechanical, hydraulic, or electronic components or other vessel machinery and equipment.
  • Cutting apart or disposal, or both, of vessel infrastructure.

Vessel deconstruction does not include vessel modification or repair.

Hazardous materials: includes fuel, lead, asbestos, polychlorinated biphenyls, and oils.

Qualified vessel deconstruction facility: structures, including floating structures, which have a National Pollutant Discharge Elimination System (NPDES) permit for vessel deconstruction.