Are you a Service Based Business in WA State?

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Hey there, Reader -

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Hope you're CRUSING IT and also enjoying this beautiful 'almost' fall weather!

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Enough of the small talk... I've got something very important for you today!

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If you are a SERVICE BUSINESS in Washington State, this newsletter is the MOST IMPORTANT thing you'll read today!

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Quick heads up: Washington State has some important tax changes coming October 1st that might affect your business.

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Does this apply to you?

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✅ YES - If you're a SERVICE business (reporting revenue under "Services &

Other Activities" for B&O taxes)

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❌ NO - If you already file Excise Taxes under RETAIL or WHOLESALE categories, you can read this just for fun, but it does not apply to you.

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Services affected:

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Here's the deal:​
Starting October 1, 2025, many service businesses will need to:
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• Review your service offerings to identify any newly taxable services
• Register for a WA Sales Tax permit/account (if you don't already have one)
• Update your contracts and billing systems
• Start charging and collecting sales tax from clients and track it as a SALES TAX PAYABLE in QuickBooks
• Report that revenue as "Retail Sales" instead of "Services"

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⚠️ IMPORTANT ⚠️

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Don't wait on this! WA State doesn't mess around with tax deadlines. Late filing penalties start at 9% of the unpaid tax, escalating to 19% after one month, and up to 29% for continued non-compliance. If you need to start collecting sales tax on October 1st but aren't registered yet, you could be looking at significant penalties on your first filing.

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Know that this change has created confusion for TONS of business owners (even us accounting folks!), so don't worry if you're scratching your head right now.
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What you need to do:​
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1. Check the official guidance: WA DOR Website​
2. Still confused? Contact WA DOR directly - they always have the final say!

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Bottom line: When in doubt, check with the source. The WA DOR Website has the most current info, and if it's still "clear as mud," give them a call.
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QUICK TIP: If you use QuickBooks Online, there is a built in Sales Tax feature (no extra charge) that can be activated to automatically calculate sales taxes for you on invoices. Sweet!!

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Ready to Outsource your books?

• Does Bookkeeping always end up at the bottom of your TO DO list, if you even get to it at all?
• Are you so far behind on your books, that you are scared to even login?
• Do you dread the idea of having to deal with categorizing and reconciling EVERY SINGLE MONTH?

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Good news! WE LOVE BOOKKEEPING and our team of Certified QBO ProAdvisor help small business just like you stay current on their books, so when tax season rolls around, they don't have to sweat it!

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If you're ready to outsource your books to a trusted partner,

Look no further! ​
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​Book a free Consultation

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Let's see if we are a good fit to work together!

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Make it a great week!

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Cheers,
The Cloud9 Financial Team

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Pam Greb
Owner | Certified CFO
​Cloud9 Financial​

113 Cherry St #92768, Seattle, WA 98104-2205
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