Washington DOR Issued Interim Guidance Statement on IT Services

The Washington Department of Revenue (DOR) has issued an interim guidance statement stating that, effective Oct. 1, information technology (IT) services will be subject to the state’s retail business and occupation (B&O) tax and retail sales tax, as mandated by Engrossed Substitute Senate Bill 5814. The guidance covers various aspects of taxing IT services, including defining what constitutes IT services, determining the sourcing rules for these services, addressing resale scenarios, the applicability of certain exemptions, and tax obligations for non-profits and government entities. [Wash. Dept of Revenue, Interim Guidance Statement on IT Services, 09/12/25]

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