Progress Payments Qualify for Interstate and Foreign Sales Tax Deduction

Monday, November 6th, 2017

Close-up of man restoring vehicle.

The Washington Department of Revenue recently ruled that progress payments for ongoing vehicle restoration projects are eligible for the interstate and foreign sales tax deduction.

The taxpayer provided vehicle restoration services. Certain nonresident customers made progress payments for ongoing projects. The taxpayer took the interstate and foreign sales tax deduction for those payment, but was denied because the payments were for vehicles that were still in Washington.

Washington exempts repairs performed on property shipped into the state by nonresidents if the seller "agrees to, and does" deliver the property to the purchaser outside of Washington. The ruling found that the deduction applied to payments made on property still located in Washington as long as the agreement called for out-of-state delivery upon completion.

Note that the deduction does not apply for B&O tax purposes because the taxpayer's services are performed in Washington. Payments Qualify for Interstate and Foreign Sales Tax Deduction

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Sales Tax Does Not Apply to Carryout Bag Fees in New York

Wednesday, October 24th, 2018 -The New York State Department of Taxation and Finance recently released a ruling determining that sales tax do...

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...