The Washington Department of Revenue released interim guidance stating that, starting October 1, 2025, a live presentation sold to a consumer is a retail sale. Sellers owe retailing B&O tax and must collect retail sales tax. The department describes a taxable live presentation as a real-time lecture, seminar, workshop, course, or similar event where the presenter and audience exchange information in real time for a fee or other consideration.
The guidance excludes one-on-one instruction, such as tutoring or consulting, and many entertainment events, including concerts, plays, and sporting events, as well as pre-recorded presentations. The department also excludes qualifying K–12 and higher education instruction tied to accreditation. For sourcing, in-person presentations source to the event location. Remote presentations source to each attendee’s physical location when the seller knows the location. If the seller does not know the attendee’s location, the department looks to the attendee’s home or business address in the seller’s records, then the billing address. For one purchaser paying for multiple remote attendees in multiple locations, the department instructs sellers to source to attendee locations when known or determinable, and to fall back to the purchaser address or billing address when attendee locations remain unknown, with records to support sourcing.
The guidance also covers resale and other operational issues. The department allows resale purchases in limited subcontracting situations using a reseller permit when the seller remains contractually responsible to the third-party buyer and no intervening use occurs. The department states the multiple points of use exemption applies if the live presentation also meets the definition of a digital automated service, with digital automated service status determined by the facts. The department states that the multiple points of use exemption does not apply to bundled transactions unless the department’s conditions for taxing the components are met. The department taxes nonprofits under the same retail sale rules as other businesses, with specific B&O deductions in limited situations. The department treats most state and local government purchases as subject to retail sales tax. The department excludes certain sales between members of an affiliated group from retail sale treatment when statutory requirements are met, thereby shifting the transaction to a service B&O classification.
Interim guidance statement regarding changes made by ESSB 5814 for live presentations, Washington Department of Revenue, September 12, 2025.