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Washington Issues Tax Guidance for Pre-October 2025 Service Contracts Affected by New Legislation

    The Washington Department of Revenue issued guidance on tax reporting for service contracts made before October 1, 2025, affected by S.B. 5814. Contracts paid before this date but providing services after are not subject to new taxes. Unpaid contracts with unchanged terms can use the old tax classification until March 31, 2026. Altered contracts after October 1, 2025, are subject to new retailing B&O and sales taxes.

Source: vitallaw.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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