There is a misconception that all services are not subject to sales tax. This article clarifies that some services are subject to retail sales tax. Following is a listing of services that are subject to sales tax when provided to consumers.
Construction services (WAC 458-20-170)
- Constructing and improving new or existing buildings and structures. Installing, repairing, cleaning, improving, constructing and decorating real or personal property for others
- Cleaning, fumigating, razing or moving structures, including painting and papering, cleaning and repairing furnaces and septic tanks, and snow removal
- Clearing land and moving earth
Installation and repair services (WAC 458-20-173)
- Repairing, cleaning, installing, or decorating personal property for others
- Furnaces, septic tanks, vehicles, appliances, etc.
Landscape maintenance (WAC 458-20-226)
Providing tangible personal property with an operator (WAC 458-20-211)
Retail recreation services (WAC 458-20-183)
- Fishing Charters
- Day trips for sight-seeing
- Service charges on tickets to professional sporting events
Personal services
- Personal training services
- Tanning
- Tattooing
- Turkish and steam baths, including hot tubs
- Dating and escort services
Miscellaneous services
- Car wash (including self-service facilities) or detailing cars, trucks, campers, boats, etc. (WAC 458-20-173)
- Catering and personal chefs (WAC 458-20-119)
- Extended warranties and maintenance agreements (WAC 458-20-257)
- Vehicle Towing
- Automobile parking
- Telephone services (458-20-245)
- Digital automated services, remote access software, and digital goods (WAC 458-20-15503)
- Escrow services and abstract and title insurance (WAC 458-20-156)
- Credit bureau services, including credit worthiness and tenant screening services
RCW 82.04.050 defines “retail sales.”
For more information and updates see:
Department of Revenue / Services subject to sales tax
Tax classifications for common business activities, DOR-WA
The materials posted in this article are for informational purposes only and should not be regarded as accounting or tax advice provided by YR Tax Compliance LLC. These materials have been prepared by professionals, however they should not replace professional services, and the user should seek advice before acting on any information presented. Every situation is uniquely different, and could make a world of difference on implementation of specific regulations. YR TAX Compliance LLC assumes no obligation to provide notification of changes of tax laws, regulations or other factors that could affect the information posted.