SALT Report 2770 – The Washington Department of Revenue released a Fact Sheet to provide information regarding the application of sales tax and business and occupation tax to dogs sold and bred in the State. Specifically noted was that dog breeders are required to register with the Department and collect and remit taxes.
When a breeder sells a dog, they should collect sales tax based on the rate in effect at the location to which the dog will be delivered. If a dog is sold to a pet store or another breeder, that sale may be exempt from sales tax if the buyer provides a reseller permit. However, the income derived from that sale will b subject to the wholesaling B&O tax.
Breeders may not deduct the cost of pet food, veterinary care, training, registration fees, shipping, or any other costs incurred during the course of business. Additionally, purchases of consumable items such as medication, pet food, and pet supplies will be subject to use tax if sales tax was not paid at the time of purchase.
Lastly, dogs are considered pets, not livestock. Therefore, they do not qualify for the sales tax exemption available to livestock that is registered in a nationally recognized breed association and sold for breeding purposes.
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