Dispute Resolution Services

From the 2024 DOR Tax Exemption Study

Det. No. 16-0141R, 36 WTD 394 (July 31, 2017) 397 ANALYSIS: DAS means any service transferred electronically that uses one or more software applications. RCW 82.04.192(3)(a). Under the provisions of RCW 82.04.050(8)(b) the term “sale at retail” or “retail sale” includes the sale of DAS to consumers: A retail sale of digital goods, digital codes, or digital automated services under this subsection (8) includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. Taxpayer does not dispute that it provides authentication and resolution services to its customers electronically through the means of software applications, which meets the definition of DAS in RCW 82.04.192(3)(a). Taxpayer’s basis for relief is that its activity qualifies for the exclusion from the definition of DAS because it primarily involves the application of human effort. Under the provisions of RCW 82.04.192(3)(b) DAS does not include: “(i) Any service that primarily involves the application of human effort by the seller, and the human effort originated after the customer request