Did you know ~ some service businesses are considered retail...and have to collect sales tax?
Generally speaking, retail services include any service work that improves a physical thing—such as: painting a house, repairing jewelry, washing cars. This can also apply to people. For example, the following businesses are considered retail: tattooing, sight seeing, personal training.
In some cases, the line between service vs. retail service is a little fuzzy, or perhaps arbitrary.
For example, if you teach yoga in a gym, with the goal of improving one's physical health, it's considered retail. If you teach yoga as a spiritual practice, it is NOT considered retail.
Sometimes, businesses might offer a combo of NON-retail services and retail services.
For example, Meghan is a color consultant. She helps home-owners choose paint colors for their homes, both exteriors and interiors. This is a NON-retail service, because she's providing ideas, and isn't physically interacting with the house. Sometimes, Meghan helps with decorating too...by hanging up paintings + curtains, repainting bookshelves. In these cases, she's offering a retail service.
To learn more, call the WA state DOR* 800.647.7706 or read here.
Jenny Girl Friday
*Department of Revenue