- Senate Bill 5814 expands sales tax to digital services in Washington, effective October 1, 2025
- Legal challenges are expected due to the focus on digital advertising services
- The bill redefines digital automated services, removing the human effort exclusion
- Taxable services are sourced based on where the customer first uses the service
- Affected categories include digital advertising, IT services, custom website development, temporary staffing, security services, and custom software
- The bill may conflict with the federal Internet Tax Freedom Act
- Sales between affiliated group members are exempt from sales tax
- Nicotine products, including synthetic and tobacco-derived, are also taxed
- The Sales Tax Institute will monitor updates and related legislation
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
