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June 23, 2025
Question

Sales tax on deposits

  • June 23, 2025
  • 0 replies
  • 0 views

We are a service business in Washington state operating on a cash basis. We file and pay sales tax and excise tax monthly to Washington DOR. When taking deposits, which can range from $150 to several thousands, do we need to charge sales tax on the deposit payment and pay that to the state even though the service hasn't been provided yet or do we wait until the service is provided and charge sales tax on the total amount on the final invoice?