You are reviewing your Liability Worksheet for Washington state and seetax. However, this is not listed in your Admin Console transactions, and you want to know how the B&O amount is assessed.
- Washington state B&O tax is a Gross Receipts Tax measured on the value of products, gross proceeds of sale, or gross income of the business.
- By system default, AvaTax uses Retailing and Wholesaling rates to calculate B&O.
- The Retailing rate is used on taxable sales.
- The Wholesaling rate is used on nontaxable sales.
- If you require different classifications and rates to be used, please contact our Support team so that our Returns team can be notified of this.
- We will replace the defaults with your specifications and use that each filing cycle to calculate your B&O amounts.
- This is only applicable for Major B&O Classifications.
- If you require Specialized B&O Classifications, it is suggested the return is handled with an alternative solution such as filing in-house as this is not yet supported by AvaTax.
- B&O Tax is filed on the WA MultiPurpose Sales return in addition to any Washington state and local taxes due.
- If you are an SST filer, and need Avalara to file and pay only your B&O tax, you need to add the WA B&O Combined filing calendar.
- B&O Tax will be entered as an Other Adjustment in your liability worksheet.
- If you have informed us that you have a unique B&O filing requirement, a member of our Reconciliations team will make a manual adjustment to your B&O amount the worksheet already calculated.
- These adjustments take place between the 8th though the 10th of each month.
- If you have any questions about how your B&O tax was calculated or why your B&O tax changed, please contact email@example.com.
- The B&O tax is not applied to individual transactions, so it is not shown on the transactions in the Admin Console.
Note: If B&O has already been added to your worksheet and additional transactions are added after the fact, or if any of your transactions have tax amount/rate overrides, this will cause B&O to be recalculated at the time of filing your return. This will either cause a pull of additional funds or a refund at the end of the filing cycle, depending on if the B&O amount was raised or lowered.
For more information on B&O tax please see the Washington State Department of Revenue website.