Use tax is a tax on the use of goods and certain services in Washington when sales tax was not paid at the time of purchase. Goods used in this state are subject to either sales tax or use tax, but not both.
Use tax is based on the value of the goods or services purchases, and includes charges for labor, materials, freight, handling, or any other amount paid or accrued, when separately stated on the invoice. Common examples of when use tax is due include:
- Mail order, telephone, or Internet purchases from businesses or people with no presence in Washington.
- Goods you purchase with a Reseller Permit and then use or consume yourself.
- Tangible personal property you acquire with a purchase of real property.
- Goods you purchase in a state with no sales tax or a tax rate lower than Washington’s.
Use tax applies to wine given away free of charge (such as wine samples provided in a tasting room). The taxable amount is based on the comparable retail selling price of the same or similar products.