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.

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  5. Itemizing The Business & Occupation Tax

Itemizing the business & occupation tax

The business and occupation (B&O) tax is the seller’s responsibility and should be included as part of their overhead when setting the sales price for their products or services. The B&O tax is not collected from customers – it is paid by the individual or business who is conducting business activity in Washington state.

If you believe the seller’s actions have violated your rights under the Consumer Protection Act, you may file a claim with the Attorney General Office's Consumer Protection Division. Information about filing a claim with the Attorney General is available at http://www.atg.wa.gov/fileacomplaint.aspx.

References

RCW 82.04.500 – Tax part of operating overhead

WAC 458-20-195 – Taxes, deductibility