Dear Axcess Client,
I’m reaching out to inform you of important changes to Washington State’s sales tax laws that will directly impact technology-related services.
Beginning October 1, 2025, new legislation expands the scope of services subject to retail sales tax, including many that are commonly offered by tech firms, like Axcess Corporation.
Key Changes affecting Tech businesses under the revised law, will now be taxable:
- Custom Software Development
Including bespoke applications, integrations, and tailored solutions. - Customization of Prewritten Software
Modifications to off-the-shelf software to meet specific client needs. - Digital Automated Services (DAS)
Services delivered electronically with minimal human intervention, such as SaaS platforms, cloud-based tools, and automated analytics. - IT Support Services
Help desk, network administration, cybersecurity, and system maintenance. - Website Design and Development
Including both static and dynamic sites, e-commerce platforms, and CMS customization. - Software Training and Technical Consulting
If billed separately from software sales, these services may now be taxable.
These changes are part of Washington’s effort to modernize its tax code and align with the digital economy.
If your business provides or purchases these services, you’ll need to begin collecting and remitting sales tax starting October 1.
What You Should Do
- Review your service offerings to identify those now subject to sales tax.
- Update your invoicing and accounting systems to reflect the new tax requirements.
- Communicate with your clients about the changes to avoid confusion.
- Consult with a tax advisor or the Washington Department of Revenue for guidance specific to your business.
We understand these changes may require adjustments to your operations, and we’re here to support you through the transition. If you have questions or need help updating your systems, please don’t hesitate to reach out.
Thank you for your continued partnership.
Warm regards,
Jim Restucci
President & CTO
Axcess Corporation™