Washington Provides Guidance on Export Sales

Washington State has provided guidance on the requirements for a sale to qualify as an export sale exempt from retail sales tax when a customs broker is involved. To qualify as an exempt export sale, a sale must meet one of the following requirements:

• the goods must be delivered to the buyer in another country;
• the goods must be delivered to a carrier who transfers the goods to another country; or
• the goods must be delivered to the buyer at shipside or aboard the buyer’s vessel or other vehicle.

If goods are delivered to an out-of-state or foreign buyer’s customs broker in Washington for subsequent delivery to the out-of-state buyer in Washington, the sale is not an exempt export sale. In this case, the delivery is deemed to be to the buyer’s agent in Washington. The seller must collect retail sales tax and must pay retailing business and occupation (B&O) tax on the sale. (Tax Topics: Customs Broker, Washington Department of Revenue, November 26, 2014)