WA state expanding who needs to collect sales tax

Washington state earns most of its money from sales tax. It requires businesses that sell products to collect sales tax.

It also requires certain services to collect sales tax. Often if these services are related to physical things, e.g. painting a mural on a wall, fixing a fence.

This is called Retail Service.

Now WA is adding more industries to the Retail Service category.

Which means new types of services will need to collect + submit sales tax.

Some new examples:

  • Advertising services

  • Graphic design

  • Presentations, workshops

  • Web design

Over the years, WA is constantly adjusting who needs to collect sales tax. Some people are not aware that technically their work is considered Retail or Retail Service.

You might not know …

That these services and products also need to collect sales tax:

  • Cleaning, organizing, decorating

  • Selling digital products, like newsletters, photos

  • Painting murals

  • Repairing, improving furniture or other objects

Is this feeling scary or overwhelming?
Are you thinking things like…..

Oh Sh*t! I can’t afford to pay more taxes? Why am I burdened with this? Will clients think my prices are too high? This is not fair! I already hate number, now I have to do this?

I got you!

Here are some key things to know upfront

1 - This won’t cost you any extra money. This is tax that you collect from the customer, and sent on to the state. (Though it will take a little extra time.)

2 - Once you know what to do, it’s not that hard.

3 - Not sure where to start? Just add 10% sales tax to everything for now, you can get more precise later. Set that money aside in a separate account if possible.

4 - Our customers are used to paying sales tax, so hopefully, for most people, this will not be a big deal.

5 - When it’s time to file, the phone support at the WA Department of Revenue is usually really nice, and it is their job to help you. (You can also tag me in to help with a Quickie Consult-Call )

6 - Other people not as smart as you have figured it out, you can too!

I’ll be creating more support materials and resources in the future. In the mean time, feel free to hit me up for a Quickie Consult-Call for a small fee. Or, if you’re a new client, find me in a free 20-min Zoom chat.

You got this!
Once you’ve got your system, this is just one more way to feel like a Bo$$!

xo Jenny

Filing WA State Taxes / Just the Basics!

Hello there,
The post below gives the most stripped-down basics for filing WA state taxes. If you’d like to read more detailed posts, and see some screenshots, click on these links: for Service Providers and Retail / Combo.

Also, I want to share this GOOD NEWS right upfront. Once you know what you’re doing, this business chore only takes 5 - 20 minutes. It will take way longer to learn about it, than to actually do them….

:) Jenny Girl Friday

Due for you IF: 
You have a WA state Business License

Estimated Time: 
5 - 10 minutes - Filing
0.5 - 2 hours - Prepping

How: 
Online with MYDOR

Due Dates:
Businesses are assigned annually, quarterly, or monthly

Annual Due Date
• April 15

Quarterly Due Dates
• Apr 30
• Jul 31
• Oct 31
• Jan 31

The Tax Form is called: 
Combined Excise Tax Return

What everybody will need: 

__ MyDOR / SAW - Log-in and Password
__ Gross Sales Total - per time period

Annual Filers
• From January 1 - December 31

Quarterly Filers
• Q1 - January 1 - March 31
• Q2 - April 1 - June 30
• Q3 - July 1 - September 30
• Q4 - October 1 - October 31

Some of you: 
__ Subtotals of Gross Sales by Category

And, if you Retail, you may need:

__ Retail Sales Subtotal
__ Retail Sales out-of-state
__ Retail Sales where Tax is collected by a "Facilitator"
__ Sales Tax Paid at the Source


Types of Tax:  

  • B&O (Business & Occupation Tax)

  • Sales Tax

  • Use Tax

Note:  These are all types of “Excise” tax. That is why the form is called “Combined Excise Tax Return” because it’s asking about all three - and some others - in one, combined form.

B&O Tax: small businesses will receive a tax credit. So, if you gross under about $55K, you will not have to pay any tax. As your income goes up above that number, the tax credit will get smaller, then disappear

Sales Tax: applies to selling products or retail services

Use Tax: applies if your business purchased items/tools outside of WA state