- The Washington Department of Revenue ruled that a SaaS provider’s time and materials transactions for implementing digital automated services for government clients are subject to Washington retail sales tax, as they are considered part of the taxable service provision.
- The Division also determined that cost reimbursements for travel, lodging, and food, incurred as part of these implementation contracts, are similarly taxable and subject to Washington retail sales tax.
- This ruling stems from the provider’s payment-processing software, which integrates with its platform to allow government clients to interact with the public and accept payments, collectively deemed taxable digital automated services under state law.
Source Deloitte
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