Posted Feb 15
If your company is registered with the State of WA’s Department of Revenue to be a “reseller”, it’s extremely important to distinguish between purchases your business makes with the intention of reselling them, versus purchases your business intends to utilize in your business. If you intend to utilize the purchase in your business, for example a computer or furniture item, remember that you are required to either pay sales taxes at “source”, or alternatively pay “use” taxes, when you file your company’s combined excise tax return. If your business is eligible to resell an item at the retail level, and therefore is not required to pay sales taxes at the wholesale level, make sure you apply for a “Reseller Permit”. If you don’t understand the rules, or have any questions about how they specifically apply to your company, please contact us!
State of Washington Sales and Use Taxes
If your company is registered with the State of WA’s Department of Revenue to be a “reseller”, it’s extremely important to distinguish between purchases your business makes with the intention of reselling them, versus purchases your business intends to utilize in your business. If you intend to utilize the purchase in your business, for example a computer or furniture item, remember that you are required to either pay sales taxes at “source”, or alternatively pay “use” taxes, when you file your company’s combined excise tax return. If your business is eligible to resell an item at the retail level, and therefore is not required to pay sales taxes at the wholesale level, make sure you apply for a “Reseller Permit”. If you don’t understand the rules, or have any questions about how they specifically apply to your company, please contact us!