Washington State Department of Revenue has issued updated guidance for businesses seeking a direct pay permit for sales and use tax. The guidance outlines eligibility thresholds ($240,000 cumulative liability or $10M taxable purchases), application process, reporting obligations, and limitations on permit use and transfer. Businesses must comply with these rules to claim a five‑year deduction on retail sales tax.
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1stopVAT · about 22 hours ago
Illinois: Use tax applies to tangible personal property purchased in Illinois when sales tax is not collected, while Chicago imposes municipal taxes on digital services such as SaaS and streaming.
The BayNet · about 24 hours ago
Maryland: The Supreme Court ruled that Potomac Edison’s transmission equipment qualifies for a sales and use tax exemption, affecting over $3.24 million in taxes. The decision clarifies which components are exempt and sets limits on refund claims.
VatIT · 2 days ago
California will tax SaaS and digital prewritten software from 1 January 2027, regardless of delivery method. The state rate is 7.25%, rising above 10% with local rates. Buyers with receipts over $5 million must self-assess use tax.
CNBC · 6 days ago
The United States has announced a 25% tariff on most Brazilian imports, effective 22 July 2026, under Section 301 of the Trade Act. The measure targets alleged unfair trade practices, with exemptions for goods such as beef, orange juice, aircraft parts and energy products, and a potential additional 12.5% duty if a forced-labour probe concludes.
1stopVAT · 6 days ago
Colorado expands sales tax to digital software under House Bill 26-1223, effective 1 January 2027. The bill removes exemptions for downloaded and remotely accessible software, potentially including SaaS.
CryptoBriefing · 6 days ago
The United States will impose a 25% tariff on most goods imported from Brazil starting 22 July 2026. The measure, triggered by a Section 301 investigation over digital trade and deforestation concerns, exempts products such as beef, coffee, and aircraft parts.
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Key Takeaways
A business may apply if it has a cumulative liability of $240,000 or more in the current calendar year, or if it makes over $10 million in taxable purchases in one calendar year.
Direct pay permits may be used to claim a deduction for retail sales tax for five years.
No, direct pay permits cannot be assigned to a third party or transferred to affiliates.
Businesses must report use tax due in the reporting period when they receive the goods or services they are reporting for.
Direct pay permits cannot be used when a reseller permit should be used instead, or for certain services such as telephone or amusement services.
Primary source
Read the full article at Sales Tax InstituteThis summary was published on VATfaqs.com on 14 January 2026. It relates to VAT developments in United States. The original source is Sales Tax Institute.
