Washington DOR Releases Information on B&O, Sales Tax Implications of Drop Shipments

The Washington Department of Revenue (DOR) released information on the tax implications of drop shipments. The information explains how wholesaling and retailing business and occupation (B&O) tax, and sales tax, may apply to both the seller and the wholesaler in drop shipment scenarios, including situations where either party has nexus with Washington, and provides guidance on documenting the nature of the sale for tax purposes. [Wash. Dep’t of Revenue, Tax Topics, Drop shipments, 01/31/24]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.