Do you need to get a Sales Tax certificate in Washington State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Washington State
- You have a distribution location such as a storage area or warehouse space with goods
- You have employees who install or assemble goods in Washington State (including independent contractors, sales persons, representatives, or agents)
- You have employees who Solicit Sales in Washington State (including independent contractors, sales persons, representatives, or agents)
- Your business leases or rents tangible personal property
- Your business delivers merchandise in Washington State with company owned vehicles
- Your business builds, installs, repairs or maintains real or tangible property in Washington State
- Your business has taxable services in the state of Washington
What constitutes taxable services in Washington State?
The majority of service businesses are not taxable in Washington State. The exceptions would be recreation or amassment services, construction services, personal services, catering services, towing automobiles, and various other services
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Washington?
As a wholesale company conducting business in the state of Washington, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable if the item being sold is taxable.
Is there sales tax on drop shipments in the state of Alabama?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Alabama are required to have sales tax added
Are there any exemptions to taxable items sold?
Sales to nonresidents, prescription medicines, raw materials and machinery, newspapers, groceries, and custom downloadable software are tax exempt.