Should I charge sales tax for web development in Washington State?
Should you charge for sales tax for web development services in Washington State?
When I started MakrMill one of the early questions I had was whether or not I needed to charge sales tax for my work. I've heard various recommendations from people but didn't know exactly who was correct on the topic. I've even heard differing recommendations from accountants as well. While doing a little a research on this topic I finally came across the answer. If you are wondering if you should be charging sales tax in Washington as a web designer/developer the answer, straight from the Washington Department of Revenue, is no. Web design/development services are subject to service and other activities B&O tax as a professional service.
If you get into selling licensed software the tax laws differ. If you are looking to sell a product in the state of Washington I suggest you speak to an accountant to understand exactly what kind of taxes need to be collected.
For the full scoop on digital related tax information please visit the Washington Department of Revenue's page on Digital Products including Digital Goods.