- Washington State Legislature expands retail sales tax to include new digital products starting October 1, 2025
- Current sales tax framework excludes some digital products; new Bill aims to address this
- Digital products are classified into digital goods and digital automated services
- New taxable digital products include custom software, advertising services, live presentations, IT services, custom website development, and data processing services
- Businesses must charge, collect, and remit retail sales tax and submit Excise Tax Returns
- Business & Occupation Tax is determined by gross income from these supplies
- Retail sales tax rate depends on the recipient’s location; accurate tax validation tools are necessary
- Compliance steps include evaluating new provisions, reviewing sales turnover, determining transaction types, registering when thresholds are met, and submitting tax returns on time
Source: 1stopvat.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.
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