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From the 2024 DOR Tax Exemption Study

Home Education Industry Guides Jewelry Stores Common Sales Tax Exemptions Print Common sales tax exemptions Out-of-state delivery If you deliver jewelry and other merchandise outside of Washington, those sales are exempt from Washington taxes. You must keep documentation to prove you delivered the product out of state. If you are a Washington-based company, you must include the amounts from such sales in the gross income you report under the retailing B&O tax and retail sales tax classification. Then take a deduction for Interstate and Foreign Sales under both classifications to reduce your taxable income. Sales to qualifying nonresidents If you sell jewelry and other merchandise to residents of certain qualifying states, US possessions, or Canadian provinces for use outside this state, see our webpage regarding Sales to nonresidents . Discounts If you offer a store discount, you do not owe retailing B&O tax or retail sales tax on the discount amount. Example: You sell a ring for $1,000 less a 10 percent discount ($100). The taxable price of the ring is $900. ($1,000 - $100 = $900) You should clearly list the amount of discount, amount subject to tax, and the amount of tax on your