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Intended audience: Telehealth and telemedicine service providers.
Effective Oct. 1, 2025, telehealth and telemedicine services are specifically excluded from the definition of digital automated services (DAS).
How are these services taxable?
Income from telehealth and telemedicine services continues to be subject to business and occupation (B&O) tax under the Service and Other Activities classification.
Definitions
Telehealth services means health care provided through telehealth.
Telehealth includes telemedicine and means the use of synchronous or asynchronous telecommunication technology by a practitioner to provide health care to a patient at a different physical location than the practitioner. Telehealth does not include the use, in isolation, of email, instant messaging, text messaging, or fax.
Telemedicine means the delivery of health care services through the use of interactive audio and video technology, permitting real-time communication between the patient at the originating site and the provider, for the purpose of diagnosis, consultation, or treatment.
More information
Engrossed Substitute Senate Bill (ESSB) 5814 Chapter 422, Laws of 2025.
Our Services newly subject to sales tax webpage will be regularly updated with additional guidance and opportunities to engage with the department.
Questions?
Please visit our contact page or call 360-705-6705.
