Washington DOR publishes draft excise recommendation on tax legal responsibility of federal authorities contractors

May 21, 2021, 5:00 a.m.

On May 1, the Washington Treasury Department issued draft excise tax advice on the excise duty and sales and use tax liability of government contractors building on real estate “from or for” the United States. The Recommendation provides that: 1) Ownership of land affects the determination of whether an individual is a federal government contractor who constructs, repairs, decorates, or enhances buildings or structures under, on, or over real estate “by or for” the United States ; 2) Sales of labor and services by contractors are not taxable. 3) The VAT exemption for workers and services related to public contracts does not apply to …

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