Frequently asked questions about ESSB 5814

General tax questions

Are accountants, lawyers, and other traditional professional service providers considered digital automated services (DAS) if they use software applications to perform or facilitate their services?

No. Generally, accountants and lawyers provide professional services that are subject to business and occupation (B&O) tax under the Service and Other Activities classification.  

Accountants and lawyers are considered the consumers of any software or digital products they use in performing or facilitating their services and must pay retail sales or use tax on these purchases. 

Examples of other professional services contemplated in this FAQ include:

• Engineers.
• Architects.
• Appraisers.
• Lobbyists.

Note: This FAQ provides general guidance and is not intended to cover every situation. Actual tax treatment may vary depending on facts and circumstances. For example, if the service provider uses email or an online portal to receive files from their client or provide the results of their services, that alone would not cause the sale of the service to be considered a DAS. However, if the service provider offers a portal where their customer can choose from various do-it-yourself templates and merely have the results reviewed by the services provider, they could be considered a DAS. The department is working on an interim guidance statement that will provide additional clarification.