(last updated 09/23/2025)
Do You Need to Start Collecting Sales Taxes?
The Washington State Department of Revenue (WA DOR) is making updates to the taxes for some SERVICES businesses, that will be subject to RETAIL B&O and Sales Taxes.
This change goes into effect starting October 1, 2025.
We RECORDED A WEBINAR on September 26, 2025.
What Services are being impacted:
- Advertising services
- Live presentations
- Information technology services
- Custom website development services
- Investigation, security, and armored car services
- Temporary staffing services
- Sales of custom software and customization of prewritten software
Interim Guidance documents are being provided regularly until Official Guidance is released:
- Advertising Services – Completed
- Custom Software – Completed
- Custom Website Development – Completed
- DAS Exclusions – Completed
- Existing Contracts – Completed
- IT Services – Completed
- Live Presentations – Completed
- Security Services – Completed
- Temporary Staffing – Completed
If you are unsure of how the department’s rules or interim guidance impact the taxability of your business activities, you may request a letter ruling as described on the WA DOR website.
Submit questions and comments to Rulings@dor.wa.gov.
Do you sell Products or Services outside of Washington?
Out of state sales can trigger taxes for your business. But how do you know if and what you owe?
To determine if your business owes sales taxes for selling products or services outside of your state, you first need to determine if you have reached “sales tax nexus” in those states. Nexus is the legal connection that creates a tax obligation. This can be established through physical presence or, more commonly for online sellers, by meeting a state’s economic thresholds.
For more information about visit: Sales Tax Institute
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