Washington Businesses Must Collect Sales Tax on Certain Advertising Services Starting October 2025

• Washington Department of Revenue reminds businesses that certain advertising services will be taxable starting October 1, 2025
• Businesses must collect retail sales tax on specific advertising services due to new state legislation
• Advertising services include digital and nondigital services related to advertisements such as layout, graphic design, production, and online marketing
• Exclusions from taxable advertising services include web hosting, domain registration, certain newspapers, printing, broadcasting, and out-of-home advertising
• Advertising services sold to members of an affiliated group are not considered a retail sale
• A special webpage lists services newly subject to retail sales tax, including advertising, IT services, custom website development, live presentations, and software sales

Source: deloitte.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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