Washington State recently introduced
taxation of digital goods and services. It's so new that even though it takes effect on July 26 (in 5 days), the Department of Revenue can't give you any guidelines on if it applies to you or not.
Now, you're probably just saying "why don't you just charge sales tax for everything?" That was the same question I asked them, and they told me that if I charge sales tax incorrectly to end-users, they can request that their sales tax be refunded to them even if we remit all of it to the state.
So let me get this straight, the Department of Revenue can't give proper guidance on charging sales tax to a rule that will take effect in 5 days and I'm penalized if I collect sales tax for everything and remit them all to the state. Seems like I can't win this one.
This really doesn't make sense for products that we produce. We are in the business of automating manual processes and streamlining them, which allow us to past the cost savings to our users. "Manual" processes are considered services and don't get charged sales tax, so why should a digital one have to charge sales tax?
I guess this is the
states answer to the rising deficit ...