Washington Sales Tax
Washington sales tax is a state and local tax levied on the sale of tangible goods and certain services. It requires sellers to register, collect the correct sales tax amount per sale, file returns and remit payments.
If you are selling taxable goods or services to customers in Washington, you must charge sales tax on each transaction and remit the collected tax to the state by the due date. The state’s Department of Revenue collects and distributes sales taxes on behalf of local government entities, which use the money to pay for infrastructure, education, and other vital services. Washington Sales Tax is 6.5%, and local rates vary widely. The Department of Revenue’s website lists tax rates by address. Most groceries and prescription drugs are exempt from sales tax, while prepared foods, dietary supplements, and soft drinks are taxable.
The state will charge penalties and interest if you miss a sales tax filing deadline. However, you can file for a tax extension in certain circumstances. In most cases, you will need to provide a reason for the delay. It is highly advisable to hire a professional who specializes in sales tax compliance.
How to File Washington Sales Tax?
Washington sales tax laws can be tricky, and compliance with them can result in costly penalties or even forced business closure. A tax professional can help you stay compliant and avoid expensive mistakes.
To determine whether you need to collect Washington Sales Tax, start by registering your business with the state Department of Revenue. Business that make sales to Washington residents can use the Department of Revenue’s address-based rate lookup tool to determine and apply sales tax to their online transactions. This tool provides a URL interface to download sales tax rate data by address or ZIP+4 code. It can also be integrated into a shopping cart or accounting system for real-time tax application
Washington Sales Tax Due Dates
The Washington Department of Revenue has set due dates for each filing frequency. These are the dates by which returns must be filed to avoid late fines and interest charges. Monthly taxpayers must file on the 25th of each month, quarterly taxpayers on the last day of each quarter, and annual sellers on January 31 of each year. If a due date falls on a weekend or holiday, it is extended to the next business day.
If you miss a filing deadline, you can still file a protest or appeal with the department. However, the rules for waiver of late penalties can be complicated. You must meet certain criteria to qualify for a penalty waiver and follow the guidelines carefully to prevent collection actions from restarting.
