Destination Sales Tax

1. What is Destination Sales Tax?
   From dor.wa.gov:
   "Currently, Washington retailers collect local sales tax based on the jurisdiction from which a product is shipped or delivered - "origin-based." Starting July 1, 2008, they will need to collect based on the destination of the shipment or delivery - "destination-based." This only affects shipments and deliveries to locations within Washington State."
   
   
2. Does this change affect me?
   From dor.wa.gov:
   "Destination-based sales tax will apply only to businesses that ship or deliver the goods they sell to locations within Washington. Under the new rules, if a retailer delivers or ships merchandise to a buyer in Washington State, the sales tax is collected based on the rate at the location where the buyer receives or takes possession of the merchandise.
   
   There is no change for deliveries outside the state or over-the-counter sales where customers take home goods from the store location."
   
   
3. Who is not affected?
   From dor.wa.gov:
   "If you do not ship or deliver, nothing will change about the way you handle sales tax. For example, if a buyer receives merchandise at your retail business location, sales tax continues to be based on that location -- the "origin" of the sale.
   
   Additionally, this change does not affect:
   
   • Deliveries to locations outside the state of Washington
   • Wholesale sales
   • Services
   • Sales of motor vehicles, trailers, semi-trailers, aircraft, watercraft, modular homes, and manufactured and mobile homes. Sales tax will continue to be based on the seller's location even if the seller delivers the items to customers.
   • Towing companies
   
   
4. I need help! How will I be able to collect destination tax on my e-commerce site?
   For many smaller and medium-sized e-commerce sites, implementation of a new taxation system is fairly daunting without access to web developers who can focus all of their energies on this topic.
   
   However, Design Spike has been aware of these changes for some time, and has been working diligently behind the scenes to develop, test, and implement cross-platform and PHP-based solutions for collection and reporting of destination-based sales tax. For more information on how we can assist you with these changes, please email us at info@designspike.com.
   
5. Is Washington the only state affected?
   No. For more information on destination-based sales tax and the Streamlined Sales Tax Project, please visit Washington Department of Revenue