Washington sales tax compliance guidance

I conducted targeted searches of official Washington Department of Revenue materials and recent authoritative analyses (accounting firms, local business groups, and tax advisors) to collect up-to-date, state-specific sales tax compliance guidance for Washington businesses (including LLCs and remote sellers).

I prioritized DOR publications, DOR interim guidance statements related to the 2025 legislative changes (ESSB 5814), and secondary summaries that explain implementation and practical compliance steps. Key findings and summary (authoritative, actionable points you can use to create the blog/newsletter content): 1) Primary Washington tax structure and registration - Washington’s principal business taxes are the Business & Occupation (B&O) tax, retail sales tax, and use tax; other taxes may apply. - Register with Washington DOR via dor.wa.gov/open-business when you make taxable retail sales, have gross income of $12,000+ annually, or if an out-of-state business has physical presence nexus or more than $100,000 in combined gross receipts sourced or attributed to Washington. 2) Sales tax basics, rates, and sourcing - The state sales tax portion is 6.5%; local rates vary and the combined rate (state + local) must be charged based on the location where the customer receives the item or service.

Use DOR tools to determine the correct combined rate and location codes. - Tangible personal property, many digital products, and certain retail services are subject to retail sales tax; digital products subject in digital form when taxable in tangible form.

Retail services include installing/repairing/improving tangible property and other specifically listed services.

I conducted targeted searches of official Washington Department of Revenue materials and recent authoritative analyses (accounting firms, local business groups, and tax advisors) to collect up-to-date, state-specific sales tax compliance guidance for Washington businesses (including LLCs and remote sellers).

I prioritized DOR publications, DOR interim guidance statements related to the 2025 legislative changes (ESSB 5814), and secondary summaries that explain implementation and practical compliance steps. Key findings and summary (authoritative, actionable points you can use to create the blog/newsletter content): 1) Primary Washington tax structure and registration

- Register with Washington DOR via dor.wa.gov/open-business when you make taxable retail sales, have gross income of $12,000+ annually, or if an out-of-state business has physical presence nexus or more than $100,000 in combined gross receipts sourced or attributed to Washington. 2) Sales tax basics, rates, and sourcing

6.5%; local rates vary and the combined rate (state + local) must be charged based on the location where the customer receives the item or service. Use DOR tools to determine the correct combined rate and location codes.

• Washington’s principal business taxes are the Business & Occupation (B&O) tax, retail sales tax, and use tax; other taxes may apply.
• The state sales tax portion is
• Tangible personal property, many digital products, and certain retail services are subject to retail sales tax; digital products subject in digital form when taxable in tangible form. Retail services include installing/repairing/improving tangible property and other specifically listed services.

Use tax and interstate purchases - Use tax applies when Washington sales tax was not paid (for example purchases from out-of-state sellers that didn’t collect WA tax). The use tax rate equals the sales tax rate applicable to where the article is first used in Washington.

Resale, exemptions, and recordkeeping - Reseller permits must be kept on file for wholesale purchases (do not send reseller permits to DOR). Common exemptions exist (manufacturing, certain food, nonprofits, tribal, etc.)—each has qualifying criteria and documentation requirements. Keep reseller permits, exemption certificates, and sourcing/location documentation.

Economic nexus, marketplace facilitators, and remote sellers - Out-of-state businesses exceeding the $100,000 combined gross receipts threshold (or with physical presence) may have registration and collection obligations in WA. When a marketplace facilitator collects and remits tax on behalf of marketplace sellers, marketplace sellers may claim the corresponding deduction on return filings. 6) 2025 legislative changes (ESSB 5814) — major expansion of taxable services effective Oct 1, 2025 - ESSB 5814 (2025) expanded the definition of "retail sales" to include many services previously not subject to retail sales tax. Effective October 1, 2025, services newly treated as retail sales include

advertising services; live presentations; information technology (IT) services; custom website development; security services (including investigation, security, armored car services); temporary staffing services; custom software and prewritten software (and modifications); and changes to digital automated services (DAS) exclusions. - The Department of Revenue issued interim guidance statements and is publishing more detailed guidance on sourcing, resale, MPU exemptions, B&O retailing classification, and contract impacts. DOR advised businesses to err on the side of collecting/ remitting when uncertain and to update contracts, invoices, and customer communications.

B&O tax interaction - Retail sales may also create retailing B&O tax liability even when a sale is exempt from retail sales tax; the B&O tax is a tax on gross receipts and has its own classification rules and deductions.

Filing, payment, and compliance practices - Businesses file excise tax returns monthly, quarterly, or annually depending on activity; DOR offers online services (My DOR) for e-filing and tools for rate determination. Late payment penalties, interest, and audits apply; maintain books and records, sourcing documentation, and reseller/exemption paperwork to support positions in audit. - DOR has issued interim and industry-specific guidance and listening sessions; businesses should monitor DOR guidance and consider professional tax advice where rules changed (ESSB 5814). 9) Practical next steps for Washington business owners / LLC founders - Review service offerings and invoices for reclassification under ESSB 5814; update contracts and customer communications to address tax treatment and price changes. - Register with DOR if thresholds met; set up My DOR e-services for filing and payments; maintain reseller permits and exemption documentation. - Use DOR rate tools and location-coding for each sale. For marketplace sellers, confirm whether a marketplace facilitator is collecting tax and claim the deduction if applicable. - If uncertain about past periods or international seller obligations, explore voluntary disclosure programs (DOR has resources and Washington has created programs for certain international sellers per recent commentary). Seek professional advice for audit exposure, nexus, and multistate sourcing. Research steps taken and sources consulted - Searched official Washington DOR pages (Business Tax Basics guide, Retail Sales Tax, DOR interim guidance statements for ESSB 5814 changes), plus authoritative summaries from accounting/tax firms (Moss Adams, Ryan, RSM) and business organizations (Seattle Chamber, MRSC) to capture practical implications and compliance recommendations. I am ready to use this compiled research to generate the requested comprehensive blog post, newsletter content, metadata, SEO elements, and practical compliance checklists targeted to US business owners and LLC founders operating in Washington. If you want, I will now produce a full blog post (with meta description, excerpt, slug, SEO keywords, and a newsletter draft) tailored to your provided fields. Specify any tone, length, or structure preferences and I will create the content.