Washington – British Columbians Do Not Qualify for Nonresident Sales Tax Exemption

1/24/2013

SALT Report 2078 – The Washington Department of Revenue issued a reminder to the state’s retailers that residents of British Columbia do not qualify for the non-resident sales tax exemption when shopping in the state.

The nonresident exemption generally applies to residents of any state or province with a sales tax rate of 3% or less.  However, the exemption does not apply to jurisdictions that impose the Harmonized Sales Tax, which is now in effect in British Columbia or the 7% provincial sales tax which will replace the HST on April 1, 2013.

The Department warns Washington retailers that if they provide the exemption to British Columbia residents they will be liable for any uncollected sales tax if audited.

For Further Information

Washington Department of Revenue – Sales to Nonresidents