The Washington Department of Revenue issued guidance on sales of goods to Canadian residents that use addresses provided by Washington package-receiving businesses.
The package-receiving businesses accept and store shipments from online and brick-and-mortar sellers for Canadian residents. This allows Canadian residents to avoid long shipping times and high international shipping costs. The Canadian residents pick the shipments from the Washington package-receiving businesses and take them into Canada.
Although these sales are being made to Canadian residents and taken across the border, they do not qualify as exempt export sales because they are shipped to and picked up in Washington. As a result, sales tax should be charged on these items. Additionally, these sellers must pay retailing B&O tax.