- The Washington Department of Revenue clarified on December 23, 2024, that surcharges, including tariffs, fuel costs, and credit card processing fees, are generally subject to tax and must be included in the selling price.
- These surcharges cannot be deducted, even if they are separately stated on invoices; businesses must collect retail sales tax on the total selling price, which includes any surcharges or tariff fees.
- Surcharges related to services are taxable under the service and other activities B&O tax classification, while utility surcharges fall under the public utility tax, prompting companies to evaluate their invoicing and point-of-sale systems to ensure compliance.
Source PwC
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