Service Businesses....vs.....RETAIL Service Businesses

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

 

Cheers!

Jenny Girl Friday

 

*Department of Revenue