Requirement to Collect Sales Tax
The University is required to collect and remit sales tax on sales of tangible personal property and certain services to outside entities (i.e. not internal sales between University departments). Sales tax is calculated on the total sales price (including administrative overhead). Sales of goods shipped directly to entities outside the state of Washington are not subject to sales tax.
Reseller's Permit
Every business that sells at wholesale must present a valid reseller's permit to purchase goods as wholesale goods not subject to the sales tax. If you believe you qualify to purchase goods at wholesale contact the Tax Office at taxofc@uw.edu to obtain a copy of the permit. For additional information about the reseller's permit visit the DOR website.
Destination-Based Sales Tax
Washington state has a destination-based sales tax. This means that the sellers must collect local sales tax based on the rates effective in the jurisdiction to which the product is shipped. This only applies to shipments or deliveries to locations within Washington State. If the item is picked up at the retail/store location, then the rate is based on the rate effective in the jurisdiction of the retail/store location.
Send any questions you have on this topic to taxofc@uw.edu. For more information on this topic, please see the Department of Revenue website. For specific information about local tax rates, please see the Local Sales and Use Tax Flyer.
Unrelated Business Income Tax
For more information on this Federal tax that may result from the sales to outside entities, please see Unrelated Business Income Tax.