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.
Is there sales tax on services in Washington State?
Professional services are generally not taxable in Washington State. However, some services are subject to sales tax. “Constructing and decorating real or personal property for others” is taxable. As are digital automated services and digital goods.
Do I have to charge sales tax on labor in Washington State?
Business and occupation tax: Washington’s business and occupation (B&O) tax is levied on the gross receipts of business operations. This means there are no deductions for labor, materials, taxes or other costs of doing business.
Are repair services taxable in Washington state?
Repairs on vehicles for consumers are retail sales and are subject to tax under the Retailing classification of B&O tax on the total charge made for the repair. Retail sales tax must also be collected on the total charge.
Do consulting services charge sales tax?
Most of the remaining 36 states with sales and use taxes implicitly exempt business management and consulting services. We base this on the fact that most do not list the services among those that are taxable or exempt. The exceptions are New Jersey, New York, and South Dakota.
Are service fees taxable?
An optional payment designated as a tip, gratuity, or service charge is not subject to tax. A mandatory payment designated as a tip, gratuity, or service charge is included in taxable gross receipts, even if the amount is later paid by the retailer to employees.
Are marketing services taxable?
California, New York, and a number of other states don’t charge sales taxes on advertising services. In these states, the services that PPC Marketing Agencies provide their clients are not subject to sales tax. Tangible personal property (TPP) provided by agencies, such as print materials, are taxable.
Are landscaping services taxable in Washington state?
Landscape design services Do not collect sales tax on the design services. If you provide landscaping design and installation services, then report the total income under the retailing B&O tax on your tax return, and collect and remit retail sales tax on these services.
What states are services taxable?
Five U.S. states (New Hampshire, Oregon, Montana, Alaska and Delaware) do not impose any general, statewide sales tax on goods or services. Of the 45 states remaining, four ( Hawaii, South Dakota, New Mexico and West Virginia ) tax services by default, with exceptions only for services specifically exempted in the law.
Which states charge sales tax on staffing services?
When it comes to permanent placement and temporary staffing arrangements, 12 states plus the District of Columbia impose a sales tax on staffing services: Connecticut, Delaware, Hawaii, Iowa, New Mexico, New York, Ohio, Pennsylvania, South Dakota, Tennessee, Washington and West Virginia.
What are enumerated services?
(b) Enumerated services. (1) Computer and data processing services. Such services mean and include providing computer time, storing and filing of information, retrieving or providing access to information, designing, implementing or converting systems, providing consulting services, and conducting feasibility studies.