A number of package receiving businesses in Washington near the Canadian border provide Washington shipping addresses for Canadian residents.
Generally, these businesses accept and store shipments from online and brick-and-mortar sellers for Canadian residents. These businesses let Canadian shoppers avoid lengthy waits at customs and international shipping costs. The Canadian residents will then pick up the products from the Washington business and take them across the border.
Are sales to Canadian residents with delivery to these package-receiving businesses in Washington subject to sales tax?
Yes. The seller (the business delivering the goods to the package receiving business) must also pay retailing B&O tax. These sales don’t qualify as export sales as the products are picked up by the Canadian buyer in Washington and then taken to Canada. The goods aren’t delivered into the export stream as required in WAC 458-20-193C.