Washington Administrative Code Title 458 (Department of Revenue)
WAC 458-20-198
Installment Sales, Method of Reporting
Agency filings affecting this section (1) Introduction. This rule explains the tax-reporting responsibilities of persons making installment sales of tangible personal property under the business and occupation (B&O), retail sales, and use taxes. (2) How is income from installment sales of tangible personal property reported? The seller must report the full selling price of installment sales of tangible personal property in the tax-reporting period during which the sale is made. This is true even when the buyer pays the tax to the seller in installments over time.
# (a)
Leases not taxable as installment sales. A lease under WAC 458-20-211 (Leases or rentals of tangible personal property, bailments) is not taxable as an installment sale.
# (b)
Interest income. Persons who receive interest or finance charges from an installment sale must pay B&O tax under the service and other business activities classification on receipt of these amounts. Retail sales and use taxes do not generally apply to these amounts. Refer to WAC 458-20-109 (Finance charges, carrying charges, interest, penalties) for further information.
# (c)
Assignment of rights to receive payments. A seller may sell or assign the right to receive payments on an installment sale to another business. The assignee should not report any sales or use taxes on such payments because the seller is responsible for remitting the full amount of sales tax. For information on how to report a buyer's default on an installment obligation, refer to WAC 458-20-196 (Bad debts). [Statutory Authority: RCW 82.32.300 , 82.01.060 (1), and 34.05.230 . WSR 05-04-048, § 458-20-198, filed 1/27/05, effective 2/27/05. Statutory Authority: RCW 82.32.300 . WSR 83-07-032 (Order ET 83-15), § 458-20-198, filed 3/15/83; Order ET 70-3, § 458-20-198 (Rule 198), filed 5/29/70, effective 7/1/70.]
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In this chapter (40 sections)
- 458-20-177 · Sales of Motor Vehicles, Campers, and Trailers to…
- 458-20-178 · Use Tax and the Use of Tangible Personal Property
- 458-20-179 · Public Utility Tax
- 458-20-180 · Motor Carriers
- 458-20-181 · Vessels, Including Log Patrols, Tugs and Barges, Operating…
- 458-20-182 · Warehouse and Other Storage Businesses
- 458-20-183 · Recreational Services and Activities
- 458-20-185 · Tax on Tobacco Products
- 458-20-186 · Tax on Cigarettes
- 458-20-187 · Tax Responsibility of Vending Machine Owners and Operators
- 458-20-189 · Sales to and by the State of Washington and Municipal…
- 458-20-190 · Sales to and by the United States and Certain Entities…
- 458-20-192 · Indians—Indian Country
- 458-20-193 · Interstate Sales of Tangible Personal Property
- 458-20-193C · Imports and Exports—Sales of Goods From Or to Persons in…
- 458-20-193D · Transportation, Communication, Public Utility Activities,…
- 458-20-194 · Doing Business Inside and Outside the State
- 458-20-195 · Taxes, Deductibility
- 458-20-196 · Bad Debts
- 458-20-197 · When Tax Liability Arises
- 458-20-198 · Installment Sales, Method of Reporting
- 458-20-199 · Accounting Methods
- 458-20-200 · Leased Departments
- 458-20-201 · Interdepartmental Charges
- 458-20-202 · Pool Purchases
- 458-20-203 · Corporations, Massachusetts Trusts
- 458-20-204 · Outdoor Advertising and Advertising Display Services
- 458-20-205 · Sales of Utility Services by Building Companies
- 458-20-207 · Legal, Arbitration, and Mediation Services
- 458-20-208 · Exemptions for Wholesale Sales of New Motor Vehicles…
- 458-20-209 · Farming for Hire and Horticultural Services Performed for…
- 458-20-210 · Sales of Tangible Personal Property for Farming—Sales of…
- 458-20-211 · Leases Or Rentals of Tangible Personal Property, Bailments
- 458-20-214 · Cooperative Marketing Associations and Independent Dealers…
- 458-20-216 · Successors, Quitting Business
- 458-20-217 · Lien for Taxes
- 458-20-218 · Advertising Agencies
- 458-20-221 · Collection of Use Tax by Retailers and Selling Agents
- 458-20-222 · Veterinarians
- 458-20-223 · Persons Performing Contracts on the Basis of Time and…