Washington Businesses: Big Tax Changes Coming Oct 1st!

Starting October 1, 2025, Washington will begin taxing more services.

Digital Automated Services (DAS) — services delivered electronically with minimal human involvement — will now be subject to sales tax.

Examples: advertising, IT support, web development, automated reporting, online training, and more.

Therapists & consultants: traditional services often remain under “Service & Other Activities” B&O, but if you use automated digital tools or client portals, sales tax may apply.

What this means for businesses:

• Charge sales tax to clients (in addition to B&O).

• Review how your services are delivered.

• Avoid costly surprises at year-end.

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Live Presentations – A Special Focus

Let’s look at live presentations, which are widely used by consultants, instructors, legal, and financial specialists.

What counts as a live presentation?A seminar, workshop, course, or similar event where information is shared in real time — in-person or online — and involves a fee or charge.

Key features:

• Purpose: to inform, explain, persuade, or educate

• Format: seminar, lecture, workshop, or class

• Audience: more than one attendee; real-time interaction allowed (not required)

• Fee: payment, registration, or other exchange of value

Examples of taxable live presentations:

• Professional or personal enrichment classes (art, cooking, business, CPR, etc.)

• Continuing education (legal, medical, trades, teaching)

• Driving courses (by private schools)

• Real-time webinars, workshops, or training (in-person or online)

Not live presentations:

• One-on-one lessons (tutoring, private music lessons)

• One-on-one professional consultations

• Pre-recorded webinars or videos

• Concerts, plays, movies, sports, fundraising events

• Classes by accredited K-12 schools or higher education institutions

If you charge for seminars, training, or interactive webinars, you’ll need to collect sales tax in addition to B&O tax starting this fall.

Make sure your services are properly classified so you don’t overpay (or undercharge) tax.