Tax insight

Washington provides guidance on advertising services under ESSB 5814

Insight
5 minute read
September 25, 2025

What happened?

The Washington Department of Revenue (DOR) issued interim guidance on September 17, 2025, clarifying what qualifies as an advertising service, how those services are sourced, and which exemptions may apply.

Why is it relevant?

Effective October 1, 2025, ESSB 5814 expands the “retail sale” definition to additional services, including advertising, which is subject to the retailing business and occupation (B&O) tax and retail sales tax as of the effective date.

For more information, see PwC’s Insight.

Actions to consider

Sellers and purchasers should carefully review their advertising and marketing revenues and expenses to determine whether the services fall within Washington’s definition of advertising. Companies also should examine the documentation they have on file to support the correct location where sales tax must be collected. In addition, companies should assess whether a multiple-points-of-use (MPU) exemption may apply to their advertising purchases.