The state of Washington has passed a new law changing the taxation of some digital products. This law is set to go into effect July 26, 2009. More information can be found at the DOR web site.

What does it mean for you?

The new law brings more conformity in the taxation of digital products. Historically, any downloaded product (software, video, music and others) were taxed as retail sales, subject to the Retailing B&O code and retail sales tax. However, confusion existed if similar products were used online or in a streaming format, without a download. Many businesses were reporting this income under the Services classification and avoiding retail sales tax.

The new law makes all products (with only a few exceptions) subject to retail sales tax. Products most affected include Software-as-a-Service, “cloud” computing, automated digital services (including research sites) and streamed music and video.

Categories: Tax News and Tips
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In a recession like this, governments start looking for anything to help cut costs and increase revenues. One of the new tax laws passed by Washington state recently involves a requirement that monthly filers of the Combined Excise Tax Return do so electronically, and that they use a new EFT system for payment.

Electronic filing reduces the cost and increases the accuracy of return filing. Washington has been encouraging everyone to switch to e-file for a while now, but many people (including myself) have resisted. There is good news, though: a major update the online filing system has made it much more functional and removed some of my concerns.

Electronic payment, of course, means no more floating checks through the mail. But there’s a silver lining here as well: previously, the state charged you to pay electronically, but the new EFT system has no fees. (For non-monthly filers, you can still use the e-check option for $1 or the credit option for 2.5%, but why would you?)

These requirements take effect July 1, 2009. The return for this period is not filed until August 25, 2009, but it is better to get started on the registration process soon. Failure to file and pay electronically will result in a 10% penalty.

For more information, see the DOR web site or give us a call.

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Managing QuickBooks and Paper Flow for Small Business Owners:

Like many small business owners, you may see paperwork, filing and bookkeeping as the enemy. You may be struggling to keep everything in order, pay everything on time and keep the records your accountant needs.

Clear Intentions and Full Potential have helped hundreds of small businesses to not only survive their recordkeeping requirements, but to thrive on them! With the advice of a Professional Organizer and Certified Public Accountant, you’ll have a complete perspective on managing all aspects of recordkeeping.

You’ll learn how to: • find it • pay it • record it • store it …and all in a way that simplifies your life and keeps your accountant happy!

**Drawing for a FREE Freedom Filer – Bring your business card!

Date:  Wednesday, June 24, 2009

Time:  11:30 a.m. – 1:30 p.m.

Location:

The Inside Scoop
16212 Bothell-Everett Hwy.
Mill Creek, WA 98012
425-742-0510
(Across the parking lot from Staples)

The Inside Scoop serves a variety of frozen yogurt and ice cream, hot dogs, and more.  There is no charge for our event, but please do feel free to purchase something tasty from the shop!

(Register on biznik.com — if you are not a member, you should be! Join for free and take advantage of the many events such as ours offered at no charge.)

Categories: Full Potential News
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