Do I charge sales tax on services in Washington State?
Services to individuals and businesses – things like haircuts, medical bills, consultant fees, etc. – are not “personal property,” and most services are not subject to sales tax. However, some services are subject to sales tax, as listed in RCW 82.04. 050.
Are professional services taxable?
Professional services are not subject to sales tax in the state of California.
What services are subject to use tax in Washington?
Services subject to sales tax
- Construction services (WAC 458-20-170)
- Installation, cleaning, and repair services (WAC 458-20-173)
- Landscaping and landscape maintenance (WAC 458-20-226)
- Providing tangible personal property with an operator (WAC 458-20-211)
- Retail recreation services (WAC 458-20-183)
Are services subject to sales tax?
Typically, early sales tax laws allowed only the taxation of “tangible personal property” (TPP), rather than taxing services. As the United States has shifted from a manufacturing-based economy to a service-based economy, many states started to impose sales and use tax on services as well.
What is exempt from sales tax in Washington state?
Goods that are subject to sales tax in Washington include physical property, like furniture, home appliances, and motor vehicles. The purchase of prescription medicine, groceries and gasoline are tax-exempt.
Do landscapers charge sales tax in Washington state?
You must pay retail sales tax (or use tax) on purchases or rentals of the tools and equipment you use to provide landscaping or horticultural services.
What is the difference between an excise tax and a sales tax?
Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.
Do you charge sales tax on labor?
All charges for materials and labor that you bill to your customer for any repair, maintenance, or installation project, including any expenses or other markups, are taxable. Example: A homeowner hires you to do repairs at her house.
Do you charge sales tax on photography services?
Sales Tax on Services. Many photographers mistakenly believe services aren’t subject to sales tax. Actually, not only are specific services taxable in many states, but service fees may also be taxable when they are very closely connected to the production of a tangible item. … Photographer does not charge sales tax.
Is Washington excise tax the same as B&O tax?
Washington’s unique gross receipts excise tax, better known as the business and occupation (B&O) tax, has caused many headaches for businesses residing in the Evergreen State.
What items are exempt from sales tax?
Some items are exempt from sales and use tax, including:
- Sales of certain food products for human consumption (many groceries)
- Sales to the U.S. Government.
- Sales of prescription medicine and certain medical devices.
- Sales of items paid for with food stamps.
Is bottled water taxable in Washington state?
Sellers of bottled water must collect sales tax except when the bottled water is purchased under the SNAP (food stamp) program. If a person does not have water safe for human consumption, they are eligible for an exemption from the sales tax.
Are online services taxable?
California – Digital products are tax exempt in California. The “sale of electronic data products such as software, data, digital books (eBooks), mobile applications and digital images is generally not taxable” (though if you provide some sort of physical copy or physical storage medium then the sale is taxable.)
Is product testing taxable?
Generally, testing charges are nontaxable, even if separately stated, when the item tested is sold for resale.
How much is sales tax in Washington?
Washington’s retail sales tax is made up of the state rate (6.5 percent) and the local sale tax rate. Local rates vary depending on the location.