Get WA Client Questionnaire 2010-2024

Washington Business & Occupation Tax While the claim that we don't have an income tax is technically true, you pay the B&O tax on your gross income. This means you pay taxes on the total amount of revenue you pull in for your business, whether you make a profit or not.

Services in Washington are generally not taxable. But watch out if the service you provide deals with construction services, you will likely have to deal with sales tax. Tangible products are taxable in Washington , with a few exceptions.

Goods that are subject to sales tax in Washington include physical property, like furniture, home appliances, and motor vehicles. The purchase of prescription medicine, groceries and gasoline are tax-exempt. Some services in Washington are subject to sales tax.

Sales Tax Breakdown Most grocery items, newspapers, and prescription drugs are exempt from sales tax, but junk food, prepared food, dietary supplements, and soft drinks are taxable.

If you run service contracts on goods sold, or if you service tangible goods as part of your sales to customers, you may be liable to collect sales tax. ... Generally, tax is due on the entire amount charged for a taxable service, including items such as labor, materials and mileage charges, even if separately stated.

The state B&O tax is a gross receipts tax. ... Washington's B&O tax is calculated on the gross income from activities. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business.

You need to report the income of such sales under this classification. The Retailing B&O tax rate is 0.471 percent (.00471) of your gross receipts. ... To see a more specific list of activities and tangible items that apply to this tax classification, visit the Retail Sales Tax section.

Services in Washington are generally not taxable. But watch out if the service you provide deals with construction services, you will likely have to deal with sales tax. Tangible products are taxable in Washington , with a few exceptions.

The business and occupation tax (often abbreviated as the B & O tax) is a type of tax levied by the U.S. states of Washington, West Virginia, and, as of 2010, Ohio, and by municipal governments in West Virginia and Kentucky.

Yes you can deduct the WA B&O tax as a business expense. You can include the B&O tax under "Other Common Business Expenses" > "Taxes and Licenses".

Washington's B&O is an excise tax measured by the value of products, gross proceeds of sales, or gross income of a business with over 30 different classifications and associated tax rates ranging from 0.138 percent to 1.5 percent.

Washington, unlike many other states, does not have an income tax. Washington's B&O tax is calculated on the gross income from activities. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business.

The tax amount is based on the value of the manufactured products or by-products. The Manufacturing B&O tax rate is 0.484 percent (0.00484) of your gross receipts. For products manufactured and sold in Washington, a business owner is subject to both the Manufacturing B&O Tax and the Wholesaling or Retailing B&O Tax.

Thus, the club must collect sales tax on a selling price of $45 and compute retailing B&O tax on gross proceeds of sale of $45. (5) Credit card service fees. When a seller allows a buyer to charge purchases on a credit card, the institution that issued the credit card charges a service fee to the seller.

Paying Fees on Sales Tax When you process a credit card transaction, your customer's credit card is charged for the total amount of the sale including sales tax. ... In a retail environment where sales tax is paid on almost every transaction, the increased processing fees can amount to a substantial yearly expense.