Washington DOR Publishes Interim Guidance on Taxability of IT Services

The Washington Department of Revenue (DOR) published interim guidelines regarding the taxability of information technology (IT) services. The guidelines clarify the definition of IT services, and specify that effective Oct. 1, IT services will be considered as retail sales subject to retail sales tax and business and occupation (B&O) tax. The guidelines also explain how to determine the place of sale of IT services, clarify when the multiple points of use exemption may apply to IT services, and how to determine the retailing B&O tax amount and the correct retail sales tax rate. [Wash. Dep’t of Revenue, Interim Guidance, 09/12/25]